Zhejiang Supor Co., Ltd.2022 Semiannual Report
August 2022
SECTION I IMPORTANT NOTES, TABLE OF CONTENTS AND
DEFINITIONS
The Board of Directors and the Board of Supervisors of Zhejiang Supor Co.,Ltd (hereinafter referred to as the "Company") and all its directors, supervisorsand senior executives warrant that this Semiannual Report is true, accurate andcomplete, and does not contain any fictitious statements, misleading informationor significant omissions; all directors, supervisors and senior executives of theCompany undertake, separately and jointly, all responsibilities in relation to thetruth, accuracy and completeness hereof.
Mr. Thierry de LA TOUR D'ARTAISE, person in charge of the Company,and Mr. Xu Bo, person in charge of accounting and person in charge of accountingdepartment (accountant in charge), hereby confirm that the financial statementenclosed in this Semiannual Report is true, accurate and complete.
All directors have attended the Board Meeting in person, in which thecurrent report was reviewed and approved.This Semiannual Report relating to such forward-looking statement as futureplan does not form any substantive commitment to investors. It is of greatuncertainty, for whether it can be realized or not depends on multiple factors,including market change and effort of management team. Please be careful ofinvestment risks.
As for the risk factors confronted by the Company, see Part 10 "Risks andCountermeasures" of Section III "DISCUSSION AND ANALYSIS OF THEMANAGEMENT".
The Company has planned not to distribute cash dividends or bonus shares,and not to convert capital reserve into share capital.
Table of Contents
SECTION I IMPORTANT NOTES, TABLE OF CONTENTS AND DEFINITIONS ...... 2
SECTION II COMPANY PROFILE AND MAJOR FINANCIAL INDICATORS ...... 7
SECTION III DISCUSSION AND ANALYSIS OF THE MANAGEMENT ...... 10
SECTION IV CORPORATE GOVERNANCE ...... 22
SECTION V ENVIRONMENTAL AND SOCIAL RESPONSIBILITY ...... 24
SECTION VI SIGNIFICANT EVENTS ...... 28
SECTION VII CHANGES IN SHARE CAPITAL AND PARTICULARS ABOUT SHAREHOLDERS ...... 37
SECTION VIII INFORMATION ON PREFERRED SHARE ...... 43
SECTION IX INFORMATION ON BOND ...... 44
SECTION X FINANCIAL STATEMENT ...... 45
CATALOG OF REFERENCE DOCUMENTSI. 2022 Semiannual Report of the Company and abstract concerned with signature of legal representative;II. Accounting statements with signature and seal of legal representative, person in charge of accounting and person in charge ofaccounting department;III. Original of all company documents and bulletins published in newspaper designated by CSRC within the reporting period.Reference documents above shall be prepared by Securities Department of the Company.
Definitions
| Items to be Defined | means | Definitions |
| SZSE | means | Shenzhen Stock Exchange |
| CSRC | means | China Securities Regulatory Commission |
| CSDCC | means | Shenzhen Branch of China Securities Depository and Clearing Corporation Limited |
| Company, the company and Supor | means | Zhejiang Supor Co., Ltd. |
| SEB Internationale | means | SEB INTERNATIONALE S.A.S |
| SEB Group | means | SEB S.A. |
| Zhejiang Supor Electrical | means | Zhejiang Supor Electrical Appliance Manufacturing Co., Ltd. |
| Shaoxing Supor | means | Zhejiang Shaoxing Supor Domestic Electrical Appliances Co., Ltd. |
| Supor Vietnam | means | Supor (Vietnam) Co., Ltd. |
| Wuhan Recycling | means | Wuhan Supor Recycling Co., Ltd. |
| Wuhan Cookware | means | Wuhan Supor Cookware Co., Ltd. |
| Wuhan PC | means | Wuhan Supor Pressure Cooker Co., Ltd. |
| Omegna | means | Hangzhou Omegna Commercial Trade Co., Ltd. |
| Shanghai Marketing | means | Shanghai Supor Cookware Marketing Co., Ltd. |
| P&R | means | Zhejiang Supor Plastic & Rubber Co., Ltd. |
| Yuhuan Sales Company | means | Yuhuan Supor Cookware Marketing Co., Ltd. |
| SEADA | means | SOUTH EAST ASIA DOMESTIC APPLIANCES PTE. LTD. |
| AFS | means | AFS VIETNAM MANAGEMENT CO.LTD. |
| Shanghai WMF | means | Shanghai WMF Enterprise Development Co., Ltd. |
| Shanghai SEB/SSEAC | means | Shanghai SEB Electrical Appliances Co., Ltd. |
| Zhejiang WMF | means | Zhejiang WMF Housewares Co., Ltd. |
| Shaoxing Supor Housewares | means | Zhejiang Shaoxing Supor Housewares Co., Ltd. |
| Supor LKA | means | Zhejiang Supor Large Kitchen Appliance Co., Ltd. |
| Supor Water Heater | means | Zhejiang Supor Water Heater Co., Ltd. |
| GSIM or Indonesian Company | means | PT Groupe SEB Indonesia MSD |
| Hainan Supor E-commerce Company | means | Hainan Supor E-Commerce Co., Ltd. |
| Hainan Tefal Trade Company | means | Hainan Tefal Trade Co., Ltd. |
| 2021 Equity Incentive Plan | means | 2021 Restricted Stock Incentive Plan (Draft) |
SECTION II COMPANY PROFILE AND MAJOR FINANCIAL
INDICATORS
I. Company Information
| Short Form of the Stock: | Supor | Stock Code | 002032 |
| Abbreviation of Unchanged Stock (if any) | None | ||
| Stock Exchange for Stock Listing | Shenzhen Stock Exchange | ||
| Chinese Name of the Company | Zhejiang Supor Co., Ltd. | ||
| Abbreviated Chinese Name of the Company (if any) | Supor | ||
| Abbreviated English Name of the Company (if any) | ZHEJIANG SUPOR CO., LTD. | ||
| Abbreviation of English Name of the Company (if any) | SUPOR | ||
| Legal Representative | Thierry de LA TOUR D'ARTAISE | ||
II. Contact Person and Contact Information
| Board Secretary | Representative of Securities Affairs | |
| Name | Ye Jide | Fang Lin |
| Address | Securities Department at 23F of Supor Building, No.1772 Jianghui Road, New & High Tech Development Zone, Hangzhou, China | Securities Department at 23F of Supor Building, No.1772 Jianghui Road, New & High Tech Development Zone, Hangzhou, China |
| Tel.: | 0571-86858778 | 0571-86858778 |
| Fax | 0571-86858678 | 0571-86858678 |
| yjd@supor.com | flin@supor.com |
III. Other Conditions
1. Contact information:
Are there any changes about the registered address, office address and postal code, website or email address of the Company in thereporting period?
□Applicable ?Not-applicable
The registered address, office address and postal code, website and email address of the Company did not change in the reportingperiod. See Annual Report 2021.
2. Media for information disclosure and archiving
Are there any changes about media for information disclosure or archiving in the reporting period?
□Applicable ?Not-applicable
Papers appointed by the Company for information disclosure: website appointed by CSRC for publishing semiannual report, and theplace for archiving the Company's semiannual report have not been changed in the reporting period. Refer to Annual Report 2021 fordetails.
3. Other relevant information
Whether other relevant information changed in the reporting period
□Applicable ?Not-applicable
IV. Major Accounting Data and Financial Indicators
Does the Company need to retroactively adjust or restate previous year's accounting data?
□Yes ?No
| This reporting period | Same period last year | Increased or decreased | |
| Operating income (RMB) | 10,323,979,744.82 | 10,433,875,893.62 | -1.05% |
| Net profits attributable to shareholders of listed company (RMB) | 932,849,164.03 | 865,590,446.89 | 7.77% |
| Net profit attributable to shareholders of listed company after deducting non-recurring profit or loss (RMB) | 909,114,292.90 | 860,175,721.67 | 5.69% |
| Net cash flows from operating activities (RMB) | 1,308,844,866.33 | 300,430,763.45 | 335.66% |
| Basic earnings per share (RMB/share) | 1.155 | 1.066 | 8.35% |
| Diluted earnings per share (RMB/share) | 1.155 | 1.063 | 8.65% |
| Return on weighted average net assets | 12.31% | 12.02% | 0.29% |
| The end of the reporting period | End of last year | Increased or decreased | |
| Total assets (RMB) | 12,471,477,330.05 | 13,899,456,422.16 | -10.27% |
| Net assets attributable to shareholders of listed company (RMB) | 6,970,314,203.17 | 7,622,639,752.86 | -8.56% |
V. Accounting Data Discrepancies under domestic and foreign Accounting Standards
1. Net profit and net assets discrepancies in financial statements disclosed separately under InternationalAccounting Standards and Chinese Accounting Standards
□Applicable ?Not-applicable
No net profit and net assets discrepancies in financial statements disclosed separately under International Accounting Standards andChinese Accounting Standards in the reporting period
2. Net profit and net assets discrepancies in financial statements disclosed separately under InternationalAccounting Standards and Chinese Accounting Standards
□Applicable ?Not-applicable
No net profit and net assets discrepancies in financial statements disclosed separately under International Accounting Standards andChinese Accounting Standards existed in the reporting period.VI. Non-recurring Profit or Loss Items and Amount
?Applicable □Not-applicable
Unit: RMB
| Item | Amount | Notes |
| Profit and loss on disposal of non-current assets (including the write-off of provision for asset impairment) | -312,542.28 | |
| Government subsidies included in the current profits and losses (except those that are closely related to the Company's normal business operations, comply with national policies and regulations and are continuously available according to certain standard quota or quantity) | 21,616,692.79 | |
| Enterprise restructuring costs, such as resettling employees expenses, integration expenses, etc. | -453,079.14 | |
| Except effective hedging business related to the Company's normal business operations, profits and losses from fair value changes caused by the held transactional financial assets and transactional financial liabilities, and investment income acquired from disposal of transactional financial assets, transactional financial liabilities and available-for-sale financial assets | 10,065,488.38 | |
| Other non-operating incomes or expenditures except for the foregoing items | 883,117.00 | |
| Minus: influenced amount of income tax | 8,065,234.95 | |
| Influenced amount on minority shareholders' equities (after tax) | -429.33 | |
| Total | 23,734,871.13 |
Details of other profit and loss items complying with the definition of non-recurring profits or losses:
□Applicable ?Not-applicable
The Company does not have other specific circumstances of other profit and loss items complying with the definition of non-recurringprofits or losses in the Company.Description of defining non-recurring profits or losses items listed in the Explanatory Announcement No.1 on Disclosure of theInformation of Companies Offering Their Securities to the Public -- Non-recurring Profit or Loss as recurring profits and losses
□Applicable ?Not-applicable
The Company did not define any non-recurring profit and loss that is defined and listed the Explanatory Announcement No.1 onDisclosure of the Information of Companies Offering Their Securities to the Public -- Non-recurring Profit or Loss as recurring profitand loss.
SECTION III DISCUSSION AND ANALYSIS OF THE
MANAGEMENTI. Main business during reporting period(I) Main business of the CompanyAs China's famous cookware R&D and manufacturing company, Zhejiang Supor Co., Ltd is a China's leading manufacturer ofsmall domestic appliances and also the first listed company in China's cookware industry. Established in 1994, the headquarters of theCompany locates in Hangzhou owning six R&D and manufacturing bases located in Yuhuan City, Hangzhou City, Shaoxing City(Yuecheng District and Keqiao District) in Zhejiang Province, Wuhan City, Hubei Province and Ho Chi Minh City, Vietnam.Supor's main businesses include: open fire cookware, kitchen utensil, small domestic appliance, large kitchen appliance and H&PCappliance.
1. Open fire cookware and kitchen utensils mainly include wok, pressure cooker, fry pan, sauce pan, steamer, pottery pot, kettle,knife, spatula, thermal pot, thermos& flask, kitchen tool, food container, etc.
2. The small domestic appliance mainly includes: electric rice cooker, electric pressure cooker, induction hob, soymilk maker,electric kettle, juicer, slow cooker, electric steamer, electric hotpot, food processor, baking pan, air fryer, etc.
3. The large kitchen appliance mainly includes: range hood, gas cooker, disinfection cabinets, water purifier, embedded steamingoven, water heater, integrated stove, etc.
4. The H&PC appliance mainly includes: air purifier, clothes steamer, vacuum cleaner, floor washer, electric iron, etc.
The Company's cookware and electrical products have been exported to more than 50 countries such as Japan, European andAmerican countries through SEB Group.(II) Development of the Company's industry and its market status
In the first half of 2022, affected by repeated pandemic incidents and Russia-Ukraine conflict, the global imbalance betweensupply and demand intensified. In addition, the resulting impacts such as the soaring price of energies, slow growth rate of goods tradeand significant increase of inflation have impeded the recovery of global economy. Due to unfavorable macroeconomic factors, globalconsumers become increasingly concerned about their purchasing power and cut spending on non-essential services and leisure. Theglobal cookware and small domestic appliance market have confronted great challenges in the first half year.
Domestic retail consumption was greatly impacted by the recurring outbreak of pandemic incidents. Backed by effective measuresfor pandemic prevention&control and consumption-promoting policies, the consumer market gradually recovered. At the same time,we also have observed that the general trend of consumption upgrade in the post-pandemic era remains unchanged, and the furtherimprovement in the urbanization rate in China, expedited facilitation of common prosperity, and popularization of pension, medicalinsurance and other social benefits, have provided a long-term support for the consumption upgrade. With the general trend ofconsumption upgrade, the continuous innovation and consumer research and the precise matching with the segment populations' high-end, individualized, fashion-orientated, healthy and intellectualized demand will become the major impetus that drives the growth ofconsumption in the industry.
In the field of open fire cookware, the flow of offline channels declined continuously. Due to the outbreak of pandemic in majorconsumption cities in China in the first half of 2022, the sales have been further shifting from offline to online channels. According tothe data of 30 major cities in China monitored by GFK, the offline retail sales of eight major product categories of open fire cookware(wok, pressure cooker, frying pan, stockpot, milk pot, steamer, cookware set and ceramic slow cooker) declined in double digits in thefirst half of 2022 on a year-on-year basis. Supor's total offline market shares of above categories have reached 48.6% in total andmaintained the leading position in the industry steadily. According to the monitoring data of AVC, the online retail sales of 11 majorproduct categories of open fire cookware (wok, pressure cooker, milk pot, frying pan, kettle, casserole, stockpot, hot pot, steamer,enamel pot and cookware set) increased flat in the first half of 2022 on a year-on-year basis. Supor’s total online market shares of abovecategories have reached 22.9%, which was four times that of the 2nd brand. In terms of the sales performance of various product
categories, the rigidly demanded product categories of wok and pressure cooker demonstrated strong vitality; the product categories ofenamel pot with exquisite appearance and great popularity among young people had a 50% year-on-year online growth rate. The trendof consumption upgrade in the open fire cookware market remains unchanged. In addition, consumers preferred those healthy materials,such as 316L stainless steel and titanium.In the field of small domestic appliance, the purchase behaviors of consumers tended to be more rational. Since consumers havehigher requirements for the technology and quality of core product categories, plus their higher sensitivity to the idling of segmentproduct categories, the consumption demand for small domestic appliance of kitchenware is continuously challenged. According to thetotal data from AVC, the retail sales of electric rice cooker, induction hob, electric pressure cooker, soybean milk machine, high-speedblender, mixer, juicer, electric kettle, baked machine (electric baking pan, electric barbecue oven, multifunctional pot), electric steamer,slow cooker, health kettle, air fryer and desktop single-function oven amounted to 26.38 billion yuan, representing a year-on-yeardecline of 4.9%. Supor's online market shares of above categories have reached 21.5% according to the data monitored by AVC in thefirst half of 2022. The market shares ranked first in the industry with a year-on-year growth of 1.0 pct. The total offline market sharesof above categories have reached 33.5%, with a year-on-year growth of 3.3 pct., ranking second in the industry. In terms of theperformance of various categories, the rigidly demanded product categories (electric rice cooker and electric kettle) showed strongresilience.The market of oil-free air fryer still grew rapidly in 2022. In the first half of 2022, its online retail sales achieved 160% year-on-year growth rate, becoming the second largest category after electric rice cooker. The versatility-oriented product categories ofelectric steamers increased by more than 50%, revealing consumers' preference for healthy cooking.(III) Business performance in the reporting period
1. Product strategy
During the reporting period, Supor sustainably promoted the innovation strategy and new product development strategy of"centering on the consumers", with the help of big data on the internet, deeply tapped the users' demands of the subdivided consumersand different scenarios, continuously provided smart product solutions, met more diversified consumer demands and provided moreconsiderate and all-around consumer experience.In the business of open fire cookware, Supor has continuously explored consumer demand and accelerated the expansion ofproducts with core market competitiveness. In the first half of 2022, the Company launched the ti-authentic uncoated non-stick wok,which created the uncoated technology. The well-loved product won the first place in the "618 Most Popular and New Item List inJD.COM".In the business of small domestic appliance, Supor adheres to the differentiated product innovation strategy at all times, andconstantly rolls out innovative and intelligent products which provide creative functions for healthy and nutritious cooking. In thecategory of electric rice cooker, Supor launched a small-capacity far-infrared IH rice cooker for small families, further consolidatingthe advantages of far-infrared series. Featuring the removable and washable technology and the design of differentiated removable andwashable glass cover of air fryer, make cleaning much more easily and thoroughly. The first stirring health kettle launched in theindustry. The ingredients could be cooked thoroughly to better meet the "health" needs through stirring. In addition, Supor keeps aclose pace with the development of science and technology, and rolls out a brand-new "IOT Convenient Cuisine Pot", which combinesscience and technology with cooking, and the function of "NFC Touch" has been applied to quickly realize human-computer interaction.The versatile multi-cooker, Xiao C chef., is a hot-selling product, which wins the first place in the positive comment list of "618 TmallCooking Pot" and the first place in the sales volume of "618 JD.COM POP Cooking Robot".Meanwhile, Supor persistently promoted the development of H&PC appliance, and launched a new floor washer M1. Supportedby the "edge" cleaning technology, it cleaned with sterilized electrolyzed water, easily eliminating hidden bacteria, and creating ahealthy environment for our family. In addition, as for the category of clothes steamer, Supor continues to keep its leading position inthe industry. According to the monitoring data of AVC, the total online market shares of Supor's product category of clothes steamerreached 12.7% in the first half of 2022, ranking second in the industry.
As for the business of large kitchen appliance, Supor continued to enhance the development in the branding of large kitchenappliance, launched differentiated far-infrared heating, steaming and baking integrated stoves, and cooperated with sports star Zhang
Jike to further expand its product influence. During the "618 Promotion", the sales of integrated stoves increased by more than 450%year-on-year. According to the monitoring data of AVC, the total online market shares of Supor's product category of gas stove reached
15.5% in the first half of 2022, ranking first in the industry.
2. Channel strategy
With the accelerated integration of online and offline markets, Supor remained "centering on the consumers", kept optimizing itschannel layout based on the changes in consumers' purchase paths, thereby meeting the purchase needs of different consumers withmulti-channel and multi-mode layout matrices. Supor always insisted on winning the trust of consumers with excellent product qualityand obtaining the support of distributors and retailers by virtue of excellent services.In terms of online channels, Supor continues to promote the online channel transformation strategy and optimize the store matrixand product sales structure. In the first half of 2022, the Company's e-commerce business maintained rapid growth, and its proportionto Supor's overall domestic sales continued to increase. Thanks to the steady advancement of one stock inventory model and DTCstrategy, Supor's sales during "618 Promotion" increased by 13.3% on a year-on-year basis. Meanwhile, Supor actively developedinterest-based platforms and continuously improved its operational capabilities, and its Pinduoduo and TikTok businesses grew rapidly.In the first half of 2022, Supor ranked first in the small kitchen appliance industry in the TikTok channel. In addition, Supor attachesimportance to member operation and takes advantage of marketing cloud platform to strengthen consumer operation and life cyclemanagement, provide users with high-value services, continuously improve satisfaction and attract more members.In terms of offline channels, due to the pandemic in the second quarter, customers flow in offline channels decreased, and theoperation of offline channels faced challenges in the first half of 2022. However, Supor has been working with channel clients andagents to actively respond, expand brand alliances and integrate brand resources, and thus remaining the solid market position. Supormaintains rapid growth among tier-1 and 2 markets by promoting community group buying and home delivery business, and continuesto enhance the cooperative relationship with head platforms to seize the opportunities of new channels. Besides, Supor continues topromote and further deepen the development strategy for tier-3 and 4 markets, strengthen and promote comprehensive cooperationwith E-commerce platforms among the O2O channel in lower-tier cities, and give full play to the advantages of medium- and high-endproduct differentiation and agency stability with a view to creating new growth points of the Company in the tier-3 and 4 markets.In terms of export business, due to geopolitical instability such as Russia-Ukraine War and high level of inflation among overseascountries, the demand of overseas markets such as Europe and America declined in the first half of 2022. In order to actively respondto the instable international market, the main customers for export sales take active control on the inventory level of local channels,therefore the Company's export business has declined after two consecutive years of rapid growth.II. Core competitiveness analysis
1. Outstanding product innovation capability
As a company long time devoted to R&D, manufacturing and sales of open fire cookware and small domestic appliances, Suporhas an acute observation and scientific research of the needs of Chinese consumers and has developed a systematic innovation systemto ceaselessly launch new products in the market.
After 1994 when Supor launched the domestic first safety pressure cooker, the Company also launched the first electric rice cookerwith ceramic crystal liner in 2005, pioneered the uncoated stainless iron pan technology in 2007, successfully introduced SEB thermo-spot patented technology in 2009, launched the industrial first IH electric rice cooker in 2011, pioneered the spherical liner in 2013,ceremoniously launched the industrial first steam IH electric rice cooker with spherical liner in 2015, innovated technology of electricrice cooker liner and launched the Shallow Pot IH Rice Cooker in 2018 and launched the handy, lighter and healthier "Core Iron II"wok, and the "Air-cooled Xpress electric rice cooker" with the rice cooked within half the time under the same quality in 2020. In 2021,Supor rolled out the new-generation anti-corrosion and anti-perforation ti-authentic stainless steel wok and the oil-concentrated fryingpan that can make sunny side up eggs with a little oil. In terms of small domestic appliance, the Company has launched the industry'sfirst far-infrared IH electric rice cooker and high-end versatile multi-cooker, Supor Xiao C chef. In 2022, the ti-authentic uncoated wok
was launched, which adopted the first uncoated technology in the industry.
2. Well-developed distributor network
Supor has stable distributor teams, and maintained good cooperative relationship with them. The relatively high coverage rate anddensity of its sales network ensure the uninterrupted supply of Supor products.
3. Strong R&D and manufacturing capacity of open fire cookware and small domestic appliance
Supor has built up six R&D production bases, respectively in Yuhuan City, Hangzhou City, Shaoxing City (Yuecheng Districtand Keqiao District) in Zhejiang Province, Wuhan City, Hubei Province and Ho Chi Minh City, Vietnam. In particular, the annualproduction scale of Wuhan Base and Shaoxing Base ranked the top in the industry. The strong R&D power and the highly professionalR&D team provide a powerful guarantee for the quality and innovation capacity of Supor products.
4. Synergistic effect of integration with SEB
Since 2006, the Company has started to establish strategic cooperation relationship with SEB which owns a long history of morethan 160 years with leading market shares of cookware and small domestic appliances worldwide. The powerful cooperation betweenSupor and SEB has brought stable export orders to the Company, and increased its overall business size and manufacturing capacity.Meanwhile, the cooperation in aspects of R&D and management will continuously enhance the core competitiveness of the Company.
5. Professional advantage of multiple brands and varieties in kitchen field
In addition to Supor brand, the Company also introduced a lot of high-end brands under SEB, such as WMF, LAGOSTINA,KRUPS and TEFAL so as to fully cover the high-end brands in kitchen field. The Company's open fire cookware and small domesticappliances rank the first class nationwide. It also explores new varieties actively such as kitchen & electric appliance and kitchenutensils. The Company has formed its special competition advantages over other rivals due to its layout of multiple brands and varietiesin kitchen field.
III. Main Business AnalysisOverview
During the reporting period, the Company achieved an operating income of RMB10,323,979,744.82, representing a year-on-yeardecrease of 1.05%. The Company realized a total profit of RMB1,252,951,332.99, representing a year-on-year growth of 12.42%; Theearnings per share is RMB1.155 with 8.35% year-on-year growth. The revenue from main business was RMB10,256,439,431.57, adecrease of RMB125,500,311.45 or 1.21% compared with the same period of last year. The main business cost wasRMB7,622,713,387.19, a decrease of RMB72,446,623.05 or 0.94% compared with the same period of the last year. The gross marginof main business was 25.68%, decreasing by 0.20% compared with the same period of the last year. Among them, the realized revenuefrom the main business of cookware was RMB3,066,665,527.99, a decrease of 0.39% on a year-on-year basis; the realized revenuefrom the main business of electric appliance was RMB7,174,700,594.40, a decrease of 1.60% on a year-on-year basis. The realizedrevenue from the main business of domestic sales was RMB7,419,891,762.28, an increase of 6.54% on a year-on-year basis. Therevenue from the main business of foreign trade was RMB2,836,547,669.29, a decrease of 16.99% on a year-on-year basis.
Changes of main financial data in the same period
Unit: RMB
| This reporting period | Same period last year | Increase / decrease YoY (%) | Reason of change | |
| Operating income | 10,323,979,744.82 | 10,433,875,893.62 | -1.05% | |
| Operating cost | 7,670,449,954.61 | 7,725,851,457.97 | -0.72% | |
| Sales expense | 1,078,585,004.10 | 1,195,543,704.82 | -9.78% |
| Administrative expense | 188,658,026.76 | 214,014,738.06 | -11.85% | |
| Financial expense | -40,815,354.68 | -4,600,114.71 | -787.27% | Mainly due to the increase in interest revenue from bank deposits and exchange gains during the reporting period. |
| Income tax expense | 319,256,554.10 | 250,485,268.05 | 27.46% | |
| R&D investment | 194,481,803.42 | 192,490,424.34 | 1.03% | |
| Net cash flows from operating activities | 1,308,844,866.33 | 300,430,763.45 | 335.66% | Mainly due to the increase in cash from sales of commodities and services provided in the cash inflow from operating activities in the reporting period. |
| Net cash flows from investing activities | 883,025,051.67 | 354,213,147.88 | 149.29% | Mainly due to the increase in cash recovery from investment in financial products in cash inflow from investing activities during the reporting period. |
| Net cash flows from financing activities | -1,639,170,531.90 | -1,305,486,628.95 | -25.56% | |
| Net increase in cash and cash equivalents | 564,870,879.41 | -651,828,253.43 | 186.66% | Mainly due to the increase in operating cash inflow. |
Significant change of profit structure or profit resource in the reporting period
□ Applicable √ Not-applicable
No significant change of profit structure or profit resource in the reporting periodContents of operating income
Unit: RMB
| This reporting period | Same period last year | Increase / decrease YoY (%) | |||
| Amount | Percentage to total operating income | Amount | Percentage to total operating income | ||
| Total operating income | 10,323,979,744.82 | 100% | 10,433,875,893.62 | 100% | -1.05% |
| By Industry | |||||
| Cookware | 3,066,665,527.99 | 29.70% | 3,078,561,410.93 | 29.51% | -0.39% |
| Electric appliances | 7,174,700,594.40 | 69.50% | 7,291,006,353.18 | 69.87% | -1.60% |
| Others | 82,613,622.43 | 0.80% | 64,308,129.51 | 0.62% | 28.47% |
| By Products | |||||
| Cookware and utensils | 3,066,665,527.99 | 29.70% | 3,078,561,410.93 | 29.51% | -0.39% |
| Cooking appliances | 4,588,882,638.90 | 44.45% | 4,584,107,417.54 | 43.93% | 0.10% |
| Food processor appliances | 1,568,135,937.20 | 15.19% | 1,783,982,127.91 | 17.10% | -12.10% |
| Other household electric appliances | 1,100,295,640.73 | 10.66% | 987,224,937.24 | 9.46% | 11.45% |
| By Areas | |||||
| Domestic sales | 7,457,451,182.53 | 72.23% | 7,016,634,762.03 | 67.25% | 6.28% |
| Export sales | 2,866,528,562.29 | 27.77% | 3,417,241,131.59 | 32.75% | -16.12% |
Note: "Others" by industry, "Other household electric appliances" by product, and region-based exceptionally include other business
incomes, the same below.The Company's industry, products or areas with operating incomes or operating profits occupying more than 10%?Applicable □Not-applicable
Unit: RMB
| Operating income | Operating cost | Gross margin | Increase / decrease YoY (%) for total operating income | Increase / decrease YoY (%) for total operating cost | Increase / decrease YoY (%) for gross margin | |
| By Industry | ||||||
| Cookware | 3,066,665,527.99 | 2,236,943,528.87 | 27.06% | -0.39% | 1.21% | -1.14% |
| Electric appliances | 7,174,700,594.40 | 5,374,982,284.90 | 25.08% | -1.60% | -1.84% | 0.18% |
| By Products | ||||||
| Cookware and utensils | 3,066,665,527.99 | 2,236,943,528.87 | 27.06% | -0.39% | 1.21% | -1.14% |
| Cooking appliances | 4,588,882,638.90 | 3,414,192,626.73 | 25.60% | 0.10% | 0.51% | -0.30% |
| Food processor appliances | 1,568,135,937.20 | 1,244,567,449.91 | 20.63% | -12.10% | -10.17% | -1.70% |
| Other household electric appliances | 1,100,295,640.73 | 774,746,349.10 | 29.59% | 11.45% | 5.67% | 3.86% |
| By Areas | ||||||
| Domestic sales | 7,457,451,182.53 | 5,268,830,298.87 | 29.35% | 6.28% | 9.94% | -2.35% |
| Export sales | 2,866,528,562.29 | 2,401,619,655.74 | 16.22% | -16.12% | -18.12% | 2.06% |
Note: In this reporting period, the overall gross margin of the Company decreased by 0.25 percentage points on a year-on-year basis.It was mainly due to the implementation of New Revenue Standards in the current period, which reclassifies transportation expensesrelated to the sales of commodities from "selling expenses" to "operating costs". According to the statistics before reclassification, theoverall gross margin of the Company increased by 2.95 percentage points on a year-on-year basis, which mainly due to channeltransformation and sales structure optimization.The Company's main business data adjusted based on the standard at the end of the latest reporting period if statistical standard forsuch data was adjusted during the reporting period
□Applicable ?Not-applicable
Descriptions of cause with above 30% change of relevant data on a YoY basis
□Applicable ?Not-applicable
IV. Analysis on Non Main Business
□Applicable ?Not-applicable
V. Analysis on Assets and Liabilities
1. Significant changes in assets
Unit: RMB
| The end of the reporting period | End of last year | Increase/decrease in proportion | Cause of change | |||
| Amount | Percentage to total assets | Amount | Percentage to total assets | |||
| Monetary capital | 3,479,946,026.90 | 27.90% | 2,654,052,417.47 | 19.09% | 8.81% | Mainly due to the increase in cash generated from the Company's business operations during the reporting period. |
| Accounts receivable | 2,151,142,929.18 | 17.25% | 2,716,945,985.33 | 19.55% | -2.30% | Mainly due to the decrease of export accounts receivable at the end of the reporting period. |
| Inventories | 2,280,319,255.52 | 18.28% | 3,096,517,055.33 | 22.28% | -4.00% | Mainly due to the accelerated inventories turnover and reasonable control of inventories during the reporting period. |
| Long-term equity investment | 65,019,578.66 | 0.52% | 65,600,611.64 | 0.47% | 0.05% | No significant change in the reporting period. |
| Fixed assets | 1,278,054,718.16 | 10.25% | 1,291,902,992.54 | 9.29% | 0.96% | No significant change in the reporting period. |
| Construction in progress | 21,688,231.49 | 0.17% | 26,482,779.31 | 0.19% | -0.02% | No significant change in the reporting period. |
| Right-of-use asset | 190,934,091.71 | 1.53% | 195,528,644.13 | 1.41% | 0.12% | No significant change in the reporting period. |
| Contract liabilities | 470,023,043.75 | 3.77% | 893,741,863.21 | 6.43% | -2.66% | Mainly due to the decrease in advance receipts from some distributors of its subsidiaries during the reporting period. |
| Lease obligation | 152,646,041.84 | 1.22% | 157,420,210.81 | 1.13% | 0.09% | No significant change in the reporting period. |
| Receivables financing | 232,348,975.14 | 1.86% | 3,312,225.62 | 0.02% | 1.84% | Mainly due to the increase in the amount of bank acceptance bills of subsidiaries at the end of the reporting period. |
| Other current assets | 659,654,342.93 | 5.29% | 2,055,027,382.63 | 14.78% | -9.49% | Mainly due to the maturity and delivery of term deposit investment at the end of the reporting period. |
| Other debt investments | 586,813,657.54 | 4.71% | 298,191,205.49 | 2.15% | 2.56% | Mainly due to the investment increase in negotiable certificate of deposit at the end of the reporting period. |
2. Main overseas assets
□Applicable ?Not-applicable
3. Assets and liabilities measured at the fair value
?Applicable □Not-applicable
Unit: RMB
| Item | Opening balance | Profit and loss from fair value changes in the reporting period | Accumulated fair value changes included into equity | Impairment loss of the current period | Amount of purchasing of the current period | Amount of sales of the current period | Other changes | Ending balance |
| Financial assets | ||||||||
| 1. Transactional financial assets (excluding derivative financial assets) | 180,312,742.31 | 3,434,993.03 | 220,000,000.00 | 183,197,205.49 | 220,550,529.85 | |||
| 2. Receivables financing | 3,312,225.62 | 229,036,749.52 | 232,348,975.14 | |||||
| 3. Other debt investments | 298,191,205.49 | 281,908,816.58 | 6,713,635.47 | 586,813,657.54 | ||||
| Total | 481,816,173.42 | 3,434,993.03 | 501,908,816.58 | 183,197,205.49 | 235,750,384.99 | 1,039,713,162.53 | ||
| Financial liabilities | 0.00 | 0.00 | ||||||
Content of other changesReceivables financing Supor discounted or transferred by endorsement part of bank acceptances before maturity as required by its dailyfund management and the business mode for such bank acceptance related to management was aimed for acquisition of contact cashflow and for sales. Therefore, bank acceptance was classified as financial assets measured at the fair value with their changes includedinto other comprehensive incomes.Are there any major changes about the valuation attribute of Company's main assets in the reporting period?
□Yes No ?
4. Restrictions of assets and rights by the end of the reporting period
For details, see "52. Assets with title or use right restrictions" of "VII. Notes to items of consolidated financial statements" in SectionX "FINANCIAL STATEMENT".
VI. Analysis on Investment
1. General conditions
□Applicable ?Not-applicable
2. Significant equity investment to be acquired in the reporting period
□Applicable ?Not-applicable
3. Significant non-equity investment to be handled in the reporting period
□Applicable ?Not-applicable
4. Financial asset investment
(1) Securities investment
□Applicable ?Not-applicable
There was no securities investment in the Company in the reporting period.
(2) Derivative products investment
?Applicable □Not-applicable
Unit: RMB10,000
| Name of derivative product investment handler | Correlated relation | Connected transaction | Type of derivative product investment | Original amount of derivative product investment | Start date | Expiry date | Opening investment amount | Purchase amount during the reporting period | Purchase amount during the reporting period | Amount of impairment provision (if any) | Ending investment amount | Proportion of ending investment amount to the Company's net assets at the end of the reporting period | Actual profit and loss amount during the reporting period |
| Bank | None | No | Foreign exchange derivatives | 14,790.55 | January 1, 2022 | June 30, 2022 | 14,790.55 | 80,392.27 | 59,671.22 | 0.00 | 35,511.60 | 5.09% | -129.17 |
| Total | 14,790.55 | -- | -- | 14,790.55 | 80,392.27 | 59,671.22 | 0.00 | 35,511.60 | 5.09% | -129.17 | |||
| Source of derivative product investment fund | Own fund | ||||||||||||
| Proceedings (if applicable) | Not applicable | ||||||||||||
| Disclosure date of the announcement of the Board of Directors on the approval of derivatives investment (if any) | April 1, 2022 | ||||||||||||
| Description of risk analysis and control measures for derivative positions during the reporting period (including but not limited to market risk, liquidity risk, credit risk, operating risk, legal risk, etc.) | In order to hedge the exchange rate risk in operating activities, reduce the the risks arising from fluctuations in exchange and interest rates, and make full use of the hedging function of foreign exchange derivatives trading business, the Company has conducted foreign exchange derivatives trading business according to business scale, term and currency of the Company. (I) Risks 1. Market risk: loss may be caused by price fluctuation of foreign exchange derivatives that was resulted from the fluctuation of market price such as target interest rate and exchange rate. 2. Internal control risk: foreign exchange derivatives trading business is highly specialized and complex, which may cause risks due to imperfect internal control mechanism. 3. Liquidity risk: the risk that a transaction cannot be completed due to insufficient market liquidity. 4. Performance risk: there is a risk of default caused by the failure to perform the contract. 5. Legal risk: risks may be caused due to changes in relevant laws or violation of relevant laws by counterparties, prohibiting the execution of the contract. (II) Risk control measures 1. Clear principle: foreign exchange derivatives trading shall be based on the principle of hedging, to avoid the risk brought by exchange rate fluctuation to the greatest extent, and adjust the | ||||||||||||
| operation strategy in time in combination with the market situation, so as to improve the hedging effect. 2. System construction: the Company has established the internal control system for the Administration of Foreign Exchange Derivatives Trading Business, which clearly defines the scope of authorization, approval procedures, key points of operation, risk management and information disclosure of derivatives transactions, and can effectively regulate foreign exchange derivatives transactions and control the risks of foreign exchange derivatives transactions. 3. Product selection: comparative analysis shall be conducted for potential products. The foreign exchange derivatives that are most suitable for the Company's business background, strong liquidity and controllable risk shall be selected for trading. The Company uses forward as a tool for general hedging and swap contracts for rolling hedging. 4. Counterparty management: carefully select the counterparties engaged in foreign exchange derivatives business. The Company only conducts foreign exchange derivatives trading business with large-scale commercial banks with legal qualifications and other foreign exchange institutions to avoid possible default risks and legal risks. 5. Dedicated team: the Company's management representative, treasury department, the financial sharing service center, the audit department, the securities department and other relevant departments set up a special working team to be responsible for the risk assessment, trading execution, booking and monitoring. The working team shall take emergent measures to stop loss when the market changes significantly. | |
| Changes in market prices or product fair values of invested derivatives during the reporting period (The analysis of the fair value of derivatives shall be made with the disclosure of specific methods used, related assumptions and parameter settings) | The amount of profit and loss incurred during the reporting period of foreign exchange derivatives was RMB1.2917 million; It was obtained by using tools for profit and loss of delivery and evaluating the spot and forward foreign exchange quotations of banking institutions. |
| Description of whether the accounting policies and specific accounting principles for the Company's derivatives during the reporting period have changed significantly compared with that during the previous reporting period | Not applicable |
| Independent directors' special opinions on the Company's derivatives investment and risk control | The independent directors have issued independent opinions on Proposal on Foreign Exchange Derivatives Trading. For details, please refer to the Independent Opinions of Independent Directors on Related Matters disclosed on http://www.cninfo.com.cn on April 1, 2022. |
5. Conditions of the use of the raised funds
□Applicable ?Not-applicable
No situation of using raised capital of the company during the reporting period
VII. Sales for Major Assets and Equity
1. Sales for major assets
□Applicable ?Not-applicable
The Company did not sell major assets till the end of the reporting period.
2. Sales for major equities
□Applicable ?Not-applicable
VIII. Analysis for Main Holding Companies and Joint Stock Companies
?Applicable □Not-applicableStatus of main subsidiaries and joint stock companies with influence on the Company's net profit exceeding 10%
Unit: RMB
| Company name | Company type | Main business | Registered capital | Total assets | Net assets | Operating income | Operating profit | Net profit |
| Wuhan Supor Cookware Co., Ltd. | Subsidiary | Cookware | RMB91.16 million | 1,205,756,642.84 | 426,358,851.62 | 1,578,669,081.43 | 62,048,490.88 | 46,353,243.63 |
| Zhejiang Supor Electrical Appliance Manufacturing Co., Ltd. | Subsidiary | Electrical product | RMB133.6971 million | 1,306,295,229.02 | 475,701,235.82 | 1,892,959,657.36 | 116,003,891.58 | 84,616,558.38 |
| Zhejiang Shaoxing Supor Domestic Electrical Appliances Co., Ltd. | Subsidiary | SDA, large kitchen appliances | RMB610 million | 2,955,358,411.79 | 2,347,633,031.44 | 3,042,695,029.89 | 566,003,878.98 | 415,955,345.47 |
Acquiring/disposing subsidiary during the reporting period
□Applicable ?Not-applicable
IX. Structural Subject under the Company's Control
□Applicable ?Not-applicable
X. Risks and Countermeasures
1. Risk from macroeconomic fluctuation
In the first half of 2022, the growth for domestic macroeconomic has slowed down significantly influenced by the internationalmacroeconomic and a new round of pandemic. Since May, as the situation of COVID-19 improved, domestic consumption hasgradually recovered. Although the overall scale of cookware and small domestic appliance industry in which the Company is locatedhas declined, the government has promoted the growth of household appliance consumption through a series of policies and measuressuch as issuing consumer coupons and subsidies. The contribution of domestic demand is expected to pick up in the second half of theyear.
Outlook for the second half, there are still downside risks in the domestic economic. In the face of the potential macroeconomicfluctuation risks, Supor will continue to adhere to its strategies, actively develop new categories and new businesses, expand marketsegments and foster new growth points.
In the first half of 2022, the comsuption end faced huge pressure influenced by Russia-Ukraine War and high level of inflationamong overseas countries. Foregin clients struggled to deal with and even strictly control their inventory. Outlook for the second half,Supor will continue to promote innovation pf new products, enhance efficiency and reduce cost to conquer the gloomy internationalmarket given that the uncertainty is still remaining,
2. Risk from price fluctuations of production factors
In the first half of 2022, the prices of main raw materials of cookware and small domestic appliances such as aluminum, copper,stainless steel and plastics dropped slightly, but they remained at a high level. In order to cope with the risks caused by the pricefluctuations of production factors, Supor is actively improving the internal labor productivity and pushing to implement the leanprojects to reduce the negative impacts caused by the rise in price of raw materials on the production costs. Besides the Company isactively boosting the automation of production line, improving the per capita labor output, and reduce the impact caused by rise inlabor cost.
3. Risk of intensified market competitiveness
As the operating cost of enterprise rises, industry brand concentration will be further increased, and there is the risk of intensifiedmarket competition in the field of cookware and small domestic appliances. In order to seize market share, high-end brand will continueto expand sales channel and regulate product and price strategy, and some high-end brand will enter shopping mall and supermarketchannels to participate in high-end market competition, which will further intensify the competitiveness of industry.
The Company will keep on insisting in the strategy to take product innovation as the core, and keep on improving innovationability to create more products with high additional value and high margin, giving full play to the competitive edge of multiple brandsand multiple product categories of Supor, and continue to improve market shares and profitability of Supor.
4. Product export and exchange loss caused by exchange rate fluctuation
The current fluctuation in foreign exchange is possible to bring negative influence.
The Company has implemented the RMB settlement of export business to SEB, with low exchange risk.
SECTION IV CORPORATE GOVERNANCE
I. Annual shareholders' meeting and interim shareholders' meeting held in the reportingperiod
1. Shareholders' meeting in the Reporting Period
| Session | Meeting type | Proportion of participated investors | Convening date | Date of disclosure | Meeting resolution |
| The Annual General Meeting of Shareholders for 2021 Fiscal Year | Annual Shareholders' Meeting | 8.19% | April 25, 2022 | April 26, 2022 | For details, please refer to the Announcement of Resolution of the Annual General Meeting of Shareholders for 2021 Fiscal Year (2022-025) disclosed on http://www.cninfo.com.cn |
2. Interim shareholders' meeting held at the request of preferred shareholders with restored voting right
□Applicable ?Not-applicable
II. Change of directors, supervisors and senior executives
□Applicable ?Not-applicable
The directors, supervisors and senior executives of the Company have not been changed within the report period. As for details, pleasesee 2021 Annual Report.III. Profit distribution and conversion of conversion from capital reserves to share capitalduring the reporting period
□Applicable ?Not-applicable
The Company has planned not to distribute cash dividends or bonus shares semiannually, and not to convert capital reserve into sharecapital.IV. Implementation of Company's equity incentive plan, employee equity holding plan or otheremployee incentive measures?Applicable □Not-applicable
1. Equity incentive
1. On January 6 2022, the 11
th
Session of the Seventh Board of Directors and 10
th
Session of the Seventh Board of Supervisors reviewedand adopted the Proposal on Grant of Restricted Stock to Incentive Objects, agreeing to grant 1,209,500 shares of Restricted Stock tototally 293 Incentive Objects. Independent Directors have addressed independent opinions on above Proposals.
For details, please refer to the Announcement of Grant of Restricted Stock to Incentive Objects disclosed on Securities Times, ChinaSecurities Journal, Securities Daily, and http://www.cninfo.com.cn dated January 7, 2022.
2. On January 28, 2022, the Company disclosed the Announcement of Completion of Registration for Grant of Restricted Stock onSecurities Times, China Securities Journal, Securities Daily, and http://www.cninfo.com.cn. The Restricted Stock of the Company hasbeen registered under the name of all incentive objects on January 27, 2022.
3. On March 31, 2022, the 12
th
Session of the Seventh Board of Directors and 11
th
Session of the Seventh Board of Supervisors reviewedand adopted the Proposal on Repurchasing and Canceling a Part of Restricted Stock. For disqualification of six incentive objects dueto their resignation, the Company has decided to repurchase and cancel 24,000 shares of Restricted Stock at the price of RMB1.00 pershare. The proposals were reviewed and approved at the Annual General Meeting of Shareholders for 2021 Fiscal Year held on April25, 2022. The Company has repurchased and canceled 24,000 shares of Restricted Stock at the price of RMB1.00 per share and paidtotally RMB24,000 to the above resigned incentive objects. After confirmed by Shenzhen Branch of CSDCC, the Company completedpurchase and cancellation work on June 29, 2022.
For detailed contents, see Announcement of Repurchasing and Canceling a Part of Restricted Stock and Announcement ofCompletion of Repurchase and Cancellation a Part of Restricted Stock disclosed on Securities Times, China Securities Journal,Securities Daily, and http://www.cninfo.com.cn dated April 1, 2022 and June 30, 2022 respectively.
2. Implementation of employee equity holding plan
□Applicable ?Not-applicable
3. Other employee incentive measures
□Applicable ?Not-applicable
SECTION V ENVIRONMENTAL AND SOCIAL RESPONSIBILITYI. Significant environmental protection problemsDo the listed company and its subsidiaries belong to key pollutant discharging unit posted by the environmental protection department??Yes □No
| Name of the Company or subsidiary | Name of main pollutant or specific pollutant | Discharge mode | Number of discharge ports | Distribution of discharge ports | Discharge concentration | Executive pollutant discharge standard | Total discharge amount | Total discharge amount checked | Excessive discharge |
| Zhejiang Supor Co., Ltd. | COD | Manage after pollutants are treated up to standards | 1 | Wastewater discharge port of the wastewater station in plant area | 30mg/L | "Quasi-IV" standards in the Table of Effluent Indexes and Standard Limits for Urban Sewage Treatment Stations in Taizhou" | 3.809t | 8.662t/a | |
| Ammoniacal nitrogen | 1.5mg/L | 0.19t | 0.433t/a | ||||||
| SO2 | Manage in an organized manner | 15 | No.1 and No.6 workshops | ＜3 mg/m? | Limitation requirements in the Comprehensive Air Pollution Control Program for Industrial Furnaces (HDQ [2019] No.56) | 0.476t | 3.06t/a | ||
| NOx | ＜8 mg/m? | 4.45t | 14.66t/a | ||||||
| Zhejiang Supor Electrical Appliance Manufacturing Co., Ltd. | COD | Indirect discharge | 1 | General discharge port of wastewater | 13.007mg/l | Discharge Standard of Pollutants for Municipal Wastewater Treatment Plant (GB18918-2002) | 4.59t | 14.6t/a | |
| Ammoniacal nitrogen | 0.140mg/l | Indirect Discharge for Emission Limitation of Nitrogen and Phosphorus for Industrial Wastewater (DB33/887-2013) | 0.049t | 0.73t/a | |||||
| VOCs | Manage in an organized manner | 3 | Spraying and drying exhaust gas discharge port; Spraying exhaust gas discharge port; Exhaust gas discharge port | 11.493mg/m? | Emission Standard of Air Pollutants for Industrial Surface Coating (DB33/2146-2018) | 0.792t | 2.067t/a |
| on plastic workshop | None | |
ZhejiangShaoxingSuporDomesticElectricalAppliancesCo., Ltd.
| Zhejiang Shaoxing Supor Domestic Electrical Appliances Co., Ltd. | COD | Manage after pollutants are treated up to standards | 1 | Wastewater discharge port of the wastewater station in plant area | 106.73mg/L | Integrated Wastewater Discharge Standard (GB8978-1996) | 36.29t | 69.63t/a |
| Ammoniacal nitrogen | 8.38mg/L | Indirect Discharge for Emission Limitation of Nitrogen and Phosphorus for Industrial Wastewater (DB33/887-2013) | 2.85t | 7.43t/a | ||||
| Total nitrogen | 26.85mg/L | Wastewater Quality Standards for Discharge to Municipal Sewers (GB/T 31962-2015) | 9.13t | 15.07135t/a | ||||
| Total nickel | 0mg/L | Emission Standard of Pollutants for Electroplating (GB 21900-2008) | 0t | 0.000022t/a | ||||
| Wuhan Supor Cookware Co., Ltd. | COD | Under intermittent discharge, the flow is unstable and irregular during discharge, but it does not belong to impact discharge | 1 | Wastewater discharge port of the sewage treatment station in plant area | 14.19mg/L | Integrated Wastewater Discharge Standard (GB8978-1996) | 3.31t | 19.38t/a |
| Ammoniacal nitrogen | 0.41mg/L | Wastewater Quality Standards for Discharge to Municipal Sewers (GB/T 31962-2015) | 0.10t | 1.94t/a | ||||
| VoCs | Manage in an organized manner | 1 | Spraying waste gas disposal and discharge port | 0.3103mg/Nm3 | Integrated Emission Standard of Air Pollutants (GB16297-1996) | 1.02t | 12.16t/a |
Construction and operation of pollution prevention facilitiesUnder special sewage treatment mechanism in the Company, all wastewater generated will gather at this station for centraltreatment. After chemical precipitation and autocatalyzed oxidation, wastewater will meet the discharge standards and then bedischarged into municipal wastewater pipes. At the same time, the Company has reclaimed water reuse facilities that can arrange watertreatment plan according to water quality. The production wastewater is first treated at the sewage treatment station and then disposedthrough the reclaimed water system for production. After that, part of the sanitary sewage after combined treatment enters municipalsewage network.
During the reporting period, through on-line monitoring by authorities, the Company's corresponding pollution prevention andcontrol facilities operate normally and meet the emission standards.
Environmental impact assessment of construction projects and other administrative permissions for environmental protectionDuring the reporting period, the subsidiary, Shaoxing Supor, implemented the technical transformation project with an annualoutput of 18 million sets of smart domestic appliance in the existing plant area. The project complies with the national and local orienteddevelopment requirements for the relevant industry, and it also complies with the overall urban planning and land utilization planningof Shaoxing City and the partitioned control and management plan of "Three Lines and One List" for the ecological environment ofYuecheng District, Shaoxing City. The site election of the project is rational, and the project clean production measures are feasible,after taken the pollution prevention and control measures, the production pollutants can all meet the discharging standards, the totalamount is under control with little implact on surrounding air environment, water environment, sound environment and otherenvironmental protected objects. The quality of ambient air, surface water, underground water, acoustic environment in thesurroundings of the project meet the corresponding functional requirements. Pursuant to the Notice about Enhancement onEnvironmental Impact Assessment Management with Environmental Quality Improvement as the Core (HHP [2016] No.150), theselected project site is not within the boundary line of ecological protection, and after effective governance measures are implementedfor the project, the environmental quality meets relevant requirements. Therefore, the project development meets the requirements of"Three Lines and One List" (as set out in HHP [2016] No.150). To sum up, the project complies with the various principles ofenvironmental protection approval, and the implementation of the project on the existing site is feasible from the perspective ofenvironmental protection.Environmental emergency planIn order to establish and perfect the emergency mechanism of environmental events, improve the ability of enterprises to dealwith environmental events, prevent the occurrence of abrupt environmental events, and quickly and effectively carry out personnelevacuation, cleaning and purification, environmental monitoring, pollution tracking, information disclosure, ecological environmentalimpact assessment and restoration actions upon occurrence of environmental events, reduce the accident losses and social hazards tothe minimum, maintain social stability, safeguard public health and property security, protect the security of local environment andwater resources, and promote the comprehensive, coordinated and sustainable development of the society, the Company, taking intoaccount its actual production and operation situation, should formulate the emergency plan for abrupt environmental events on thebasis of earnest identification and evaluation of potential major hazards, accident types, occurrence possibility, accident consequences,and degree of severity.Currently, the Company has completed the preparation, review & approval and filing of the emergency plan for abruptenvironmental events. The Company adheres to the principles of "Prevention Orientation, Hazard Mitigation, Centralized Leadership,Hierarchal Responsibility, Self-rescue Machanism, Localized Management, Resource Integration, Linkage Disposal", and carries outthe work in relation to the emergency plan for abrupt environmental events.Environmental monitoring scheme
The Company has formulated the environment self-monitoring plan in accordance with relevant national laws and regulations,and which includes: (1) Waste gas pollution source monitoring: Sampling points are set up at all discharge ports of waste gases, andmonitoring of waste gases is conducted on a quarterly/semi-annually basis and from time to time, based on different monitoring indexes;
(2) Wastewater pollution source monitoring: Monitoring and sampling are conducted on a monthly basis at the inlet and outlet of thewastewater treatment station, in order to monitor the variation of wastewater pollution source and the up-to-standard discharge of thewastewater treated by the wastewater treatment station. The monitoring items include: suspended matters, five-day biochemical oxygendemand, anionic surfactant, total phosphorus, petroleum, etc.Administrative penalty received within the reporting period due to environmental problemsNoneOther environmental information that shall be made publicNone
Measures to reduce carbon emissions during the reporting period and effects
□Applicable ?Not-applicable
Other environmental protection related informationNoneII. Social responsibilitiesDuring the reporting period, the Company continued to support rural schools in need in remote mountainous areas in the centraland western regions to improve their school-running conditions, and comprehensively improve the school-running ability of ruralschools by means of teacher training, online & offline education support, etc.In the context of rural revitalisation and common prosperity, the Company proposed to "share a better life with every child",hoping to leverage its industrial strengths to support rural primary schools to further develop into "schools suitable for rural children'slives", and to promote the practice of future-oriented life education in schools to improve the quality of education.During the reporting period, the Company donated RMB2 million to support the post-disaster reconstruction of Supor PrimarySchool in Yuanzhuang, Jun County, Henan Province, and it has completed the main construction of the teaching and dormitorybuildings, which are expected to be put into use in the autumn term this year. So far, Supor has donated 28 rural schools in the centraland western China. Among which, 14 Supor primary schools have introduced Ulight online livestreaming courses of art and foreignlanguage for public welfare. In addition, the Company has tried to use its own products for the public good, allowing rural children toparticipate in the design of children's water cup products and giving them as gifts to over 3,000 mountainous rural children on Children'sDay.In line with the requirements for labor education in primary and secondary schools advocated by the Ministry of Education, theCompany has been implementing future-oriented life education on a pilot basis with Wentao Primary School in Binjiang District,Hangzhou, striving to be a model implemented in more urban and rural schools.With the promotion of rural revitalization and common prosperity, the Company will closely keep up with the national policy inthe future. The Company will actively promote various public welfare actions in the areas of life education for children in mountainvillages and broaden their horizons among young people in mountain villages by taking the advantages of own business capabilitiesand resources on the public welfare platform of Supor. Besides, we will unite more like-minded public welfare partners to work togetherto contribute to the realization of better life and better society in remote regions.
SECTION VI SIGNIFICANT EVENTSI. Commitments that were fulfilled in the reporting period and had not been fulfilled till theend of the reporting period by actual controller, shareholder, related party, acquirer and theCompany
□Applicable ?Not-applicable
Commitments that were fulfilled in the reporting period and had not been fulfilled till the end of the reporting period by actual controller,shareholder, related party, acquirer and the Company.II. Non-operating occupation of capital of listed companies by controlling shareholders andrelated parties
□Applicable ?Not-applicable
There was no non-operating occupation of capital of listed companies by controlling shareholders and related parties of the Companyduring the reporting period.
III. Conditions of illegal external guarantee
□Applicable ?Not-applicable
The Company involves no illegal external guarantee during the reporting period.IV. Employment and dismissal of certified public accountantsHas the semiannual financial statement been audited?
□Yes ?No
The semiannual report has not been audited.V. Explanation of the Board of Directors and the Board of Supervisors on the "Non-standardaudit report"
□Applicable ?Not-applicable
VI. Description of Board of Directors for "Non-standard audit report" last year
□Applicable ?Not-applicable
VII. Bankruptcy or reorganization
□Applicable ?Not-applicable
There was no bankruptcy, reorganization or related matters in the Company in the reporting period.VIII. Lawsuits
Significant litigations and arbitrations
□Applicable ?Not-applicable
There was no significant litigation and arbitration occurred in the reporting period.
Other lawsuits
□Applicable ?Not-applicable
IX. Punishment and rectification
□Applicable ?Not-applicable
X. Integrity Status of the Company, controlling shareholder and actual controller
□Applicable ?Not-applicable
XI. Significant connected transactions
1. Connected transaction related to daily business
?Applicable □Not-applicable
| Connected party | Correlated relation | Type of connected transaction | Contents of connected transaction | Pricing principle of connected transaction | Price of connected transaction | Amount of connected transaction (RMB10,000) | Percentage to amount of same transaction | Approved transaction limit (RMB10,000) | Exceeding approved limit or not | Means of payments of connected transaction | Market price of available same transaction | Date of disclosure | Reference for disclosure |
| Wuhan Anzai Cookware Co., Ltd. | Associated enterprise | Purchase of commodity | Finished products | Contract price | - | 6,445.11 | 1.01% | No | Bank transfer or notes | - | |||
| Wuhan Anzai Cookware Co., Ltd. | Associated enterprise | Purchase of commodity | Accessories | Market price | - | 4,274.69 | 0.67% | No | Bank transfer or notes | - | |||
| GROUPE SEB EXPORT | Same controlling shareholder with the controlling shareholder | Purchase of commodity | Finished products | Contract price | - | 456.96 | 0.07% | No | Bank transfer or notes | - | |||
| TEFAL S.A.S. | Same controlling shareholder with the controlling shareholder | Purchase of commodity | Accessories | Market price | - | 556.48 | 0.09% | No | Bank transfer or notes | - | |||
| LAGOSTINA S.P.A. | Same controlling shareholder | Purchase of commodity | Finished products | Contract price | - | 219.49 | 0.03% | No | Bank transfer or notes | - | |||
| SEB INTERNATIONAL SERVICE S.A.S. | Same controlling shareholder with the controlling shareholder | Purchase of commodity | Accessories | Market price | - | 23.42 | 0.00% | No | Bank transfer or notes | - | |||
| GROUPE | Same | Purchase of | Accesso | Market | - | 183.91 | 0.03% | No | Bank | - |
| SEB MOULINEX | controlling shareholder with the controlling shareholder | commodity | ries | price | transfer or notes | ||||||||
| ETHERA | Same controlling shareholder with the controlling shareholder | Purchase of commodity | Accessories | Market price | - | 31.96 | 0.00% | No | Bank transfer or notes | - | |||
| WMF GROUPE GMBH | Same controlling shareholder | Purchase of commodity | Finished products | Contract price | - | 1,238.73 | 0.19% | No | Bank transfer or notes | - | |||
| WMF (HE SHAN) MANUFACTURING COMPANY LIMITED | Same controlling shareholder | Purchase of commodity | Finished products | Contract price | - | 21.41 | 0.00% | No | Bank transfer or notes | - | |||
| Supor Group Co., Ltd. | The company controlled by related natural person | Purchase of commodity | Finished products | Contract price | - | 0.75 | 0.00% | No | Bank transfer or notes | - | |||
| SEB ASIA LTD. | Same controlling shareholder | Sale of commodities | Finished products | Contract price | - | 259,959.08 | 25.18% | No | Bank transfer or notes | - | |||
| SEB ASIA LTD. | Same controlling shareholder | Sale of commodities | Accessories | Contract price | - | 264.81 | 0.03% | No | Bank transfer or notes | - | |||
| S.A.S. SEB | Same controlling shareholder with the controlling shareholder | Sale of commodities | Finished products | Contract price | - | 1,014.32 | 0.10% | No | Bank transfer or notes | - | |||
| S.A.S. SEB | Same controlling shareholder with the controlling shareholder | Sale of commodities | Accessories | Contract price | - | 49.54 | 0.00% | No | Bank transfer or notes | - | |||
| TEFAL S.A.S. | Same controlling shareholder with the controlling shareholder | Sale of commodities | Finished products | Contract price | - | 577.16 | 0.06% | No | Bank transfer or notes | - | |||
| TEFAL S.A.S. | Same controlling shareholder with the controlling | Sale of commodities | Accessories | Contract price | - | 781.05 | 0.08% | No | Bank transfer or notes | - |
| shareholder | |||||||||||||
| GROUPE SEB MOULINEX | Same controlling shareholder with the controlling shareholder | Sale of commodities | Finished products | Contract price | - | 1,172.99 | 0.11% | No | Bank transfer or notes | - | |||
| Supor Group Co., Ltd. | The company controlled by related natural person | Sale of commodities | Finished products | Market price | - | 245.99 | 0.02% | No | Bank transfer or notes | - | |||
| Zhejiang Nanyang Pharmaceutical Sales Co., Ltd. | The company controlled by related natural person | Sale of commodities | Finished products | Market price | - | 21.67 | 0.00% | No | Bank transfer or notes | - | |||
| SEB INTERNATIONAL SERVICE S.A.S. | Same controlling shareholder with the controlling shareholder | Sale of commodities | Accessories | Contract price | - | 1,067.88 | 0.10% | No | Bank transfer or notes | - | |||
| Wuhan Anzai Cookware Co., Ltd. | Associated enterprise | Sale of commodities | Accessories | Contract price | - | 1.19 | 0.00% | No | Bank transfer or notes | - | |||
| LAGOSTINA S.P.A. | Same controlling shareholder | Sale of commodities | Finished products | Contract price | - | 4.93 | 0.00% | No | Bank transfer or notes | - | |||
| LAGOSTINA S.P.A. | Same controlling shareholder | Sale of commodities | Accessories | Contract price | - | 78.17 | 0.01% | No | Bank transfer or notes | - | |||
| IMUSA USA LLC | Same controlling shareholder | Sale of commodities | Finished products | Contract price | - | 987.27 | 0.10% | No | Bank transfer or notes | - | |||
| IMUSA USA LLC | Same controlling shareholder | Sale of commodities | Accessories | Contract price | - | 1.73 | 0.00% | No | Bank transfer or notes | - | |||
| WMF Consumer Goods (Shanghai) Co, Ltd. | Same controlling shareholder | Sale of commodities | Finished products | Contract price | - | 21.91 | 0.00% | No | Bank transfer or notes | - | |||
| GROUPE SEB VIETNAM JOINT STOCK COMPANY | Same controlling shareholder | Sale of commodities | Finished products | Contract price | - | 1,271.21 | 0.12% | No | Bank transfer or notes | - | |||
| GROUPE SEB VIETNAM JOINT | Same controlling shareholder | Sale of commodities | Accessories | Contract price | - | 1.11 | 0.00% | No | Bank transfer or notes | - |
| STOCK COMPANY | |||||||||||||
| GROUPE SEB CANADA | Same controlling shareholder | Sale of commodities | Finished products | Contract price | - | 828.11 | 0.08% | No | Bank transfer or notes | - | |||
| GROUPE SEB ANDEAN S.A. | Same controlling shareholder | Sale of commodities | Accessories | Contract price | - | 278.51 | 0.03% | No | Bank transfer or notes | - | |||
| Total | -- | -- | 282,081.54 | -- | -- | -- | -- | -- | -- | ||||
| Details of large sales return | Not applicable | ||||||||||||
| Actual implementation of estimated total amount of connected transaction by category incurred during the reporting period in the report period (if any) | During January to June of 2022, the total amount of connected transactions between Supor and SEB Group and its related parties was RMB 2,710,921,400. | ||||||||||||
| Reason for the big difference between transaction price and market reference price (if applicable) | Not applicable | ||||||||||||
2. Connected transaction from the acquisition and sale of assets or equity purchase
□Applicable ?Not-applicable
There was no connected transaction from purchase and sales for assets or equity in the Company reporting period.
3. Connected transaction for co-investment abroad
□Applicable ?Not-applicable
There was no connected transaction for co-investment abroad in the Company reporting period
4. Connected creditor's rights and debts
□Applicable ?Not-applicable
There were no related creditor's rights and debts in the Company reporting period
5. Transactions with connected financial companies
□Applicable ?Not-applicable
There is no deposit, loan, credit granting or other financial business between the Company and the financial companies with associationrelation, and the Company and the related party.
6. The transactions between the financial company controlled by the Company and related party
□Applicable ?Not-applicable
There is no deposit, loan, credit granting or other financial business between the finance companies controlled by the Company andthe related party.
7. Other important connected transactions
□Applicable ?Not-applicable
There were no significant connected transactions in the Company reporting period.XII. Important contracts and performances
1. Trusteeship, contracting and lease
(1) Trusteeship
□Applicable ?Not-applicable
The Company has no trusteeship during the reporting period.
(2) Contracting
□Applicable ?Not-applicable
No contracting was made in the reporting period.
(3) Lease situation
?Applicable □Not-applicableDescriptions of related lease situationFor details, see "14. Right-of-use asset" and "25. Lease obligation" of "VII. Notes to items of consolidated financial statements" inSection X "FINANCIAL STATEMENT".Projects that bring profit and loss exceeding 10% of the Company's total profit amount in the reporting period.
□Applicable ?Not-applicable
During the reporting period, there are no leasing items which bring profits and losses to the Company of more than 10% of the totalprofits during the reporting period.
2. Important guarantee
?Applicable □Not-applicable
Unit: RMB10,000
| External guarantee of the Company and its subsidiaries (excluding the guarantee of subsidiaries) | ||||||||||
| Name of guaranteed object | Disclosure date of announcement related to the guaranteed amount | Guaranteed amount | Actual occurring date | Actual guaranteed amount | Guarantee type | Collateral (if any) | Counter-guarantee condition (if any) | Guarantee period | Fulfilled or not | Whether it is guaranteed by related party |
| The distributors meeting certain | On January 22, 2021 | 80,000.00 | July 2021 - December 2021 | 38,324.72 | General guarantee and pledge | Cash | Yes | July 2021 - June 2022 | Yes | No |
| requirements in Supor | ||||||||||
| The distributors meeting certain requirements in Supor | December 14, 2021 | 140,000.00 | January 2022 - June 2022 | 32,108.55 | General guarantee and pledge | Cash | Yes | January 2022 - December 2022 | No | No |
| Total approved external guaranteed amount within the reporting period (A1) | 140,000.00 | Total actual external guaranteed amount within the reporting period (A2) | 70,433.27 | |||||||
| Total approved external guaranteed amount at the end of the reporting period (A3) | 220,000.00 | Total balance of actual external guarantee at the end of the reporting period (A4) | 21,919.74 | |||||||
| The Company's guarantee of subsidiaries | ||||||||||
| Name of guaranteed object | Disclosure date of announcement related to the guaranteed amount | Guaranteed amount | Actual occurring date | Actual guaranteed amount | Guarantee type | Collateral (if any) | Counter-guarantee condition (if any) | Guarantee period | Fulfilled or not | Whether it is guaranteed by related party |
| Zhejiang Shaoxing Supor Housewares Co., Ltd. | April 1, 2021 | 200,000.00 | July 2021- August 2021 | 26,600.00 | General guarantee | None | None | July 2021 - February 2022 | Yes | No |
| Zhejiang Shaoxing Supor Housewares Co., Ltd. | April 1, 2021 | 200,000.00 | January 2022 - April 2022 | 24,081.50 | General guarantee | None | None | January 2022 - October 2022 | No | No |
| Zhejiang Shaoxing Supor Housewares Co., Ltd. | April 1, 2022 | 300,000.00 | May 2022- June 2022 | 41,570.00 | General guarantee | None | None | May 2022 - December 2022 | No | No |
| Total approved guaranteed amount of subsidiaries within the reporting period (B1) | 400,000 | Total actual guaranteed amount of subsidiaries within the reporting period (B2) | 92,251.50 | |||||||
| Total approved guaranteed amount of subsidiaries at the end of the reporting period (B3) | 700,000 | Total actual guarantee balance of subsidiaries at the end of the reporting period (B4) | 65,651.50 | |||||||
| Subsidiaries' guarantee of subsidiaries | ||||||||||
| Name of guaranteed object | Disclosure date of announcement related to the guaranteed amount | Guaranteed amount | Actual occurring date | Actual guaranteed amount | Guarantee type | Collateral (if any) | Counter-guarantee condition (if any) | Guarantee period | Fulfilled or not | Whether it is guaranteed by related party |
| Zhejiang Shaoxing Supor Housewares Co., Ltd. | April 1, 2021 | 200,000.00 | July 2021- October 2021 | 8,417.50 | General guarantee | None | None | July 2021- April 2022 | Yes | No |
| Zhejiang Shaoxing Supor Housewares | April 1, 2021 | 200,000.00 | January 2022 | 33,667.00 | General guarantee | None | None | January 2022 - July 2022 | No | No |
| Co., Ltd. | ||||||||||
| Zhejiang Shaoxing Supor Housewares Co., Ltd. | April 1, 2022 | 300,000.00 | June 2022 | 5,323.50 | General guarantee | None | None | June 2022 - December 2022 | No | No |
| Total approved guaranteed amount of subsidiaries within the reporting period (C1) | 0 | Total actual guaranteed amount of subsidiaries within the reporting period (C2) | 47,408.00 | |||||||
| Approved total guaranteed amount towards the subsidiaries at the end of the reporting period (C3) | 0 | Total actual guarantee balance of subsidiaries at the end of the reporting period (C4) | 38,990.50 | |||||||
| Total guaranteed amount of the Company (namely the total of the first three items) | ||||||||||
| Approved total guaranteed amount in reporting period (A1+B1+C1) | 540,000.00 | Total guaranteed actual amount during the reporting period (A2+B2+C2) | 210,092.77 | |||||||
| Total approved guaranteed amount at the end of reporting period (A3+B3+C3) | 920,000.00 | Total actual guarantee balance at the end of reporting period (A4+B4+C4) | 126,561.74 | |||||||
| Proportion (%) of the actual total guaranteed amount (that is A4+B4+C4) in the Company's net assets | 18.16% | |||||||||
| Including: | ||||||||||
| Total guaranteed amount of shareholders, actual controllers and related party (D) | 0 | |||||||||
| Guaranteed amount provided for guaranteed objects with a liability rate of assets of over 70% directly or indirectly (E) | 104,642.00 | |||||||||
| Excess of total guaranteed amount over 50% of net assets (F) | 0 | |||||||||
| Total guaranteed amount of the said three items (D+E+F) | 104,642.00 | |||||||||
| Description of the situation where the guarantee liability has occurred within the reporting period or there is evidence that it is possible to bear joint liability for repayment for the unexpired guarantee contract (if any) | None | |||||||||
| Descriptions for external guarantee provided against the established procedures (if any) | None | |||||||||
Note: The 12th Session of the Seventh Board of Directors and the Annual General Meeting of Shareholders for 2021 Fiscal Yearreviewed and adopted the Proposal on Guarantee for Wholly-owned Subsidiary and Mutual Guarantee among Wholly-ownedSubsidiarie. The Company and its wholly-owned subsidiary would guarantee for wholly-owned subsidiaries with a total amount notexceeding RMB 4 billion in 2022 fiscal year.
3. Entrustment of wealth management
?Applicable □Not-applicable
Unit: RMB10,000
| Specific type | Source of entrusted financial fund | Amount of entrusted financial management | Undue balance | Overdue amount unclaimed | Amount of impairment accrued from overdue financial products |
| Bank financial products | Own fund | 30,000.00 | 22,000.00 | 0 | 0 |
| Total | 30,000.00 | 22,000.00 | 0 | 0 | |
During the reporting period, financial products were purchased and the principal and income were recovered as follows:
For the short-term financial products purchased by the Company in first half of 2022, please refer to http://www.cninfo.com.cnAnnouncement of Using Excessive Cash to Purchase Short-term Financial Products (2022-015), Announcement of Progress of UsingExcessive Cash to Purchase Short-term Financial Products (2022-024) and Announcement of Progress of Using Excessive Cash toPurchase Short-term Financial Products (2022-041).Specific description for high-risk entrusted finance with single significant amount, low security, poor liquidity and unguaranteedprincipal
□Applicable ?Not-applicable
Circumstances in which principal of entrusted financing may not be recovered or which may result in decrease in value:
□Applicable ?Not-applicable
4. Other important contracts
□Applicable ?Not-applicable
There were no other significant contracts involved in the Company in the reporting period.
XIII. Introduction for Other Important Matters
□Applicable ?Not-applicable
There were no other important matters in the reporting period.XIV. Important Matter of the Company's Subsidiaries
□Applicable ?Not-applicable
SECTION VII CHANGES IN SHARE CAPITAL AND
PARTICULARS ABOUT SHAREHOLDERSI. Changes in Share Capital
1. Changes in share capital
Unit: share
| Before change | Increase/decrease in the period (+ , -) | After change | |||||||
| Share number | Proportion | New shares | Shares bonus | Converted capital | Others | Subtotal | Share number | Proportion | |
| I. Restricted Outstanding Shares | 848,564 | 0.10% | 1,007,259 | 1,007,259 | 1,855,823 | 0.23% | |||
| 1. Shares held by the State | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| 2. Shares held by state-owned legal entities | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| 3. Shares held by other domestic investors | 848,564 | 0.10% | 1,007,259 | 1,007,259 | 1,855,823 | 0.23% | |||
| Including: Shares held by domestic legal entities | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| Shares held by domestic natural persons | 848,564 | 0.10% | 1,007,259 | 1,007,259 | 1,855,823 | 0.23% | |||
| 4. Shares held by foreign capitals | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| Including: Shares held by foreign legal entities | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| Shares held by foreign natural persons | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| II. Non-restricted Outstanding Shares | 807,829,912 | 99.90% | -1,031,259 | -1,031,259 | 806,798,653 | 99.77% | |||
| 1. RMB common shares | 807,829,912 | 99.90% | -1,031,259 | -1,031,259 | 806,798,653 | 99.77% | |||
| 2. Domestically listed foreign shares | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| 3. Overseas listed foreign shares | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| 4. Others | 0 | 0.00% | 0 | 0 | 0 | 0.00% | |||
| III. Sum of Shares | 808,678,476 | 100.00% | -24,000 | -24,000 | 808,654,476 | 100.00% | |||
Reasons for share capital change?Applicable □Not-applicable
1. Top management of the Company unlocked 25% of the shares registered under their names on the last transaction date of the previousyear.
2. Totally 1,209,500 shares of Restricted Stock in 2021 Restricted Stock Incentive Plan have been registered under the name of 293incentive objects on January 27, 2022.
3. On June 29, 2022, the totally 24,000 shares of restricted stock that have been granted to resigned incentive objects but have not been
unlocked from restriction in 2021 restricted stock incentive plan were repurchased and cancelled. Upon the repurchase and cancellation,the Company's total share capital decreased from 808,678,476 to 808,654,476 shares.Approval of change in stock?Applicable □Not-applicable
1. On January 6 2022, the 11th Session of the Seventh Board of Directors and the 10th Session of the Seventh Board of Supervisorsreviewed and adopted the Proposal on Grant of Restricted Stock to Incentive Objects, agreeing to grant 1,209,500 shares of RestrictedStock to totally 293 Incentive Objects. The grant date for Restricted Stock is January 6, 2022. After confirmed by Shenzhen Branch ofCSDCC, the Restricted Stock in 2021 Restricted Stock Incentive Plan were registered under all incentive objects on January 27, 2022.
2. On March 31, 2022, the 12th Session of the Seventh Board of Directors and the 11th Session of the Seventh Board of Supervisorsreviewed and adopted the Proposal on Repurchasing and Canceling a Part of Restricted Stock. For disqualification of six IncentiveObjects due to their resignation, the Company has decided to repurchase and cancel 24,000 shares of Restricted Stocks at the price ofRMB1 per share. The proposal has been deliberated and approved during the Annual General Meeting of Shareholders for 2021 FiscalYear held on April 25, 2022. The Company has repurchased and canceled 24,000 shares of Restricted Stock at the price of RMB1 pershare and paid totally RMB24,000 to the above resigned incentive objects. After confirmed by Shenzhen Branch of CSDCC, theCompany completed purchase and cancellation work on June 29, 2022.Transfer of shares changed?Applicable □Not-applicableAfter confirmed by Shenzhen Branch of CSDCC, totally 1,209,500 shares of Restricted Stock in 2021 Restricted Stock Incentive Planwere transferred and registered to the names of 293 incentive objects on January 27, 2022Progress in the implementation of share repurchase?Applicable □Not-applicableThe Proposal on Public Shares Repurchase Plan was reviewed and adopted by the 12th Session of Seventh Board of Directors held onMarch 31, 2022. To effectively protect the interests of shareholders, enhance investor confidence, and consider the Company's overallfinancial situation, the Company planned to repurchase the Company's shares with self-owned capital for reducing registered capitaland implementing equity incentive plan. The Company would repurchase the Company's shares from secondary market throughconcentrated competitive bidding. The maximum price for repurchasing shares shall not exceed RMB57.96 per share (adjusted toRMB56.03 per share after Profit Distribution for 2021 Fiscal Year). The top limitation of shares to be repurchased will not exceed16,173,570 shares and the bottom limitation of shares will not be lower than 8,086,785 shares. The valid duration of public sharesrepurchase plan shall be within 12 months after the general meeting of shareholders having approved the Resolution on Public SharesRepurchase Plan. The Company initiatly implementated the share repurchase plan on May 6, 2022. As of the end of the reportingperiod, the Company has repurchased 1,095,000 shares accounting for 0.14% of the total share capital of the Company; at the highestprice of RMB54.00/share and lowest price of RMB50.75/share with the payment of RMB58,179,500 (excluding transaction cost).The Proposal on Public Share Repurchase Plan was reviewed and adopted by the Annual General Meeting of Shareholders for 2021Fiscal Year held on April 25, 2022 and the Repurchase Report on Public Shares was published on April 26, 2022. For detailed contents,please see the Repurchase Report on Public Shares (Announcement No.: 2022-028), Announcement on Adjusting Share Price for PublicShares Repurchase Plan (Announcement No.: 2022-035), Announcement of Initial Repurchase of Public Shares (Announcement No.:
2022-032) and Announcement on Progress of Public Shares Repurchase Plan (Announcement No.: 2022-033, 2022-036 and 2022-038)disclosed on Securities Times, China Securities Journal, Securities Daily, and http://www.cninfo.com.cn.Progress in the reduction of shareholding of repurchased shares through auction
□Applicable ?Not-applicable
Influence of shares change on basic earnings per share and diluted earnings per share in the latest year and period and net assets pershare owned by the Company's ordinary shareholder and other financial indexes
?Applicable □Not-applicableTotally 24,000 shares of Restricted Stock were repurchased and cancelled which creates minor influence on the earnings per share anddiluted revenue per share and creates no influence on the net asset value per share vested in common shareholders of the Company andother financial indexes.The other contents the Company thinks fit to disclose or the securities regulatory authority requires disclosing
□Applicable ?Not-applicable
2. Changes of Restricted Stock
?Applicable □Not-applicable
Unit: share
| Name | Restricted outstanding stocks at period-begin | Restricted outstanding stocks unlocked in the reporting period | Increased outstanding stocks unlocked in the reporting period | Restricted outstanding stocks at period-end | Restriction reason | Date of unlocking restriction |
| Su Xianze | 486,136 | 121,534 | 364,602 | Locked stocks of top management | Top management of the Company unlocked 25% of the shares registered under their names on the last transaction date of the previous year. | |
| Xu Bo | 173,737 | 43,434 | 130,303 | Locked stocks of top management | Top management of the Company unlocked 25% of the shares registered under their names on the last transaction date of the previous year. | |
| Ye Jide | 52,191 | 13,048 | 39,143 | Locked stocks of top management | Top management of the Company unlocked 25% of the shares registered under their names on the last transaction date of the previous year. | |
| Su Ming-Jui | 136,500 | 225 | 136,275 | Locked stocks of top management (resignation) | Before November 19, 2023, 25% of the total shares can be unlocked each year. All the shares held after the above date will be unlocked. | |
| Incentive objects of 2021 Equity Incentive Plan | 0 | 24,000 | 1,209,500 | 1,185,500 | Restricted Stock of equity incentive, of which the Company repurchased and cancelled 24,000 shares of Restricted Stock granted to the resigned incentive objects that had not yet reached the conditions for release of Restricted Stock. | Totally 1,209,500 shares of Restricted Stock in 2021 Restricted Stock Incentive Plan were transferred and registered to 293 incentive objects on January 27, 2022. The above Restricted Stock will be unlocked in two phases after 24 months from the date of completion of grant registration with each phase having a 50% unlocking ratio. The first phase is expected to be unlocked on January 27, 2024; and the second phase is expected to be unlocked on January 27, 2025. |
| Total | 848,564 | 202,241 | 1,209,500 | 1,855,823 | -- | -- |
II. Security Offering and Listing Information
□Applicable ?Not-applicable
III. Number of Shareholders of the Company and Share-holding Conditions
Unit: share
| Total number of common shareholders at the end of the reporting period | 16,005 | Total number of preferred shareholder whose voting right is recovered at the end of reporting period (if any) (refer to Note 8) | 0 | |||||||
| Information on shareholders holding more than 5% stocks or information on top 10 shareholders | ||||||||||
| Name | Nature | Shareholding ratio | Number of shares held at period-end | Increase/decrease in the reporting period | Number of restricted outstanding shares | Number of non-restricted outstanding shares | Pledge, labeling, or freezing | |||
| Status of shares | Share number | |||||||||
| SEB INTERNATIONALE S.A.S | Foreign legal entity | 82.44% | 666,681,904 | 0 | 0 | 666,681,904 | ||||
| Hong Kong Securities Clearing Company Ltd. | Foreign legal entity | 8.43% | 68,164,438 | 3,696,054 | 0 | 68,164,438 | ||||
| Ningbo Bank-Zhongtai Xingyuan Value-selected Flexible Complex Securities Investment Funds | Others | 0.70% | 5,689,830 | 5,115,178 | 0 | 5,689,830 | ||||
| Fidelity Mutual Fund & Investment Management - Customers' Capital | Foreign legal entity | 0.31% | 2,529,922 | -1,264,800 | 0 | 2,529,922 | ||||
| China Merchants Bank-Zhongtai Yuheng Value-selected Flexible Complex Securities Investment Funds | Others | 0.27% | 2,192,383 | 1,892,683 | 0 | 2,192,383 | ||||
| BNP Paribas - Own Funds | Foreign legal entity | 0.27% | 2,150,145 | -2,391,836 | 0 | 2,150,145 | ||||
| National Social Security Fund No. 502 | Others | 0.23% | 1,862,265 | 1,862,265 | 0 | 1,862,265 | ||||
| Industrial Bank-Zhongtai Xingwei Value-selected Complex Securities Investment Funds | Others | 0.21% | 1,680,777 | 1,680,777 | 0 | 1,680,777 | ||||
| BARCLAYS BA NK PLC | Foreign legal entity | 0.17% | 1,386,091 | 1,288,819 | 0 | 1,386,091 | ||||
| Bank of Communications-E-Fund Kerui Flexible Complex Securities Investment Funds | Others | 0.16% | 1,314,314 | 1,314,314 | 0 | 1,314,314 | ||||
| Strategic investor or general corporate investor who becomes top 10 shareholder as a result of rights issue (if any) (refer to Note 3) | None | |||||||||
| Description on the above-mentioned shareholder relationships or concerted actions | Ningbo Bank-Zhongtai Xingyuan Value-selected Flexible Complex Securities Investment Funds, China Merchants Bank-Zhongtai Yuheng Value-selected Flexible Complex Securities Investment Funds and Industrial Bank-Zhongtai Xingwei Value-selected Complex Securities Investment Funds, all of which belongs to Zhongtai Fund. It is not aware of whether other shareholders are associated with each other, and whether they are persons acting in concert as stipulated in the Measures for the Administration of the Acquisition of Listed Companies. | |||||||||
| Description of the above shareholders' involvement in entrusted/entrusted voting rights and waiver of voting rights | None | |||||||||
| Special instructions for the existence of special repurchase accounts among the top 10 shareholders (if any) (see Note 11) | None | |||||||||
| Top 10 shareholders holding non-restricted outstanding shares | ||||||||||
| Name | Number of non-restricted | Type of share | ||||||||
| outstanding stocks held at reporting period-end | Type of share | Share number | |
| SEB INTERNATIONALE S.A.S | 666,681,904 | RMB common shares | 666,681,904 |
| Hong Kong Securities Clearing Company Ltd. | 68,164,438 | RMB common shares | 68,164,438 |
| Ningbo Bank-Zhongtai Xingyuan Value-selected Flexible Complex Securities Investment Funds | 5,689,830 | RMB common shares | 5,689,830 |
| Fidelity Mutual Fund & Investment Management - Customers' Capital | 2,529,922 | RMB common shares | 2,529,922 |
| China Merchants Bank-Zhongtai Yuheng Value-selected Flexible Complex Securities Investment Funds | 2,192,383 | RMB common shares | 2,192,383 |
| BNP Paribas - Own Funds | 2,150,145 | RMB common shares | 2,150,145 |
| National Social Security Fund No. 502 | 1,862,265 | RMB common shares | 1,862,265 |
| Industrial Bank-Zhongtai Xingwei Value-selected Complex Securities Investment Funds | 1,680,777 | RMB common shares | 1,680,777 |
| BARCLAYS BA NK PLC | 1,386,091 | RMB common shares | 1,386,091 |
| Bank of Communications-E-Fund Kerui Flexible Complex Securities Investment Funds | 1,314,314 | RMB common shares | 1,314,314 |
| Connected relationship or concerted parties among the top 10 shareholders holding non-restricted outstanding shares, and between the top 10 shareholders holding non-restricted outstanding stocks and top 10 shareholders | Same as above | ||
| Information on top 10 common shareholders involved in securities margin trading business (if any) (see Note 4) | None | ||
Did the top 10 common shareholders and the top 10 common shareholders holding non-restricted stocks conduct the agreed repurchasetransaction during the reporting period?
□Yes ?No
The top 10 common shareholders and the top 10 common shareholders holding non-restricted stocks did not conduct the agreedrepurchase transaction during the reporting period.
IV. Changes in share holding status of directors, supervisors and senior executives
?Applicable □Not-applicable
| Name | Position | Position status | Beginning quantity of stocks | Quantity of increased stocks in this period | Quantity of decreased stocks in this period | Closing quantity of stocks | Quantity of restricted stocks to be granted at the beginning | Quantity of restricted stocks to be granted in this period | Quantity of restricted stocks to be granted at the end of period |
| Su Xianze | Director | On-service | 486,136 | 0 | 121,534 | 364,602 | 0 | 0 | 0 |
| Cheung Kwok Wah | General Manager | On-service | 0 | 0 | 0 | 0 | 0 | 60,000 | 60,000 |
| Xu Bo | Chief Financial Officer | On-service | 173,737 | 0 | 0 | 173,737 | 0 | 45,000 | 45,000 |
| Ye Jide | Vice General Manager, Board Secretary | On-service | 52,191 | 0 | 0 | 52,191 | 0 | 20,000 | 20,000 |
| Total | -- | -- | 712,064 | 0 | 121,534 | 590,530 | 0 | 125,000 | 125,000 |
V. Change of the controlling shareholder or actual controllerChange of controlling shareholder in the reporting period
□Applicable ?Not-applicable
No change of controlling shareholder occurred in the reporting period.Change of actual controller in the reporting period
□Applicable ?Not-applicable
No change of actual controller occurred in the reporting period.
SECTION VIII INFORMATION ON PREFERRED SHARE
□Applicable ?Not-applicable
No preferred share existed in the reporting period.
SECTION IX INFORMATION ON BOND
□Applicable ?Not-applicable
SECTION X FINANCIAL STATEMENTI. Audit ReportWas semiannual report audited?
□Yes ?No
The semiannual report has not been audited.
II. Financial statement
Unit of statement in notes to financial statement: RMB
1. Consolidated balance sheet
Compiled by: Zhejiang Supor Co., Ltd.
June 30, 2022
Unit: RMB
| Item | June 30, 2022 | January 1, 2022 |
| Current asset: | ||
| Monetary capital | 3,479,946,026.90 | 2,654,052,417.47 |
| Settlement reserve | ||
| Loans to other banks | ||
| Transactional financial assets | 220,550,529.85 | 180,312,742.31 |
| Derivative financial assets | ||
| Notes receivable | 35,454,679.55 | 54,879,357.24 |
| Accounts receivable | 2,151,142,929.18 | 2,716,945,985.33 |
| Receivables financing | 232,348,975.14 | 3,312,225.62 |
| Advance payment | 398,813,676.89 | 385,367,862.85 |
| Premiums receivable | ||
| Reinsurance accounts receivable | ||
| Reinsurance contract reserve receivable | ||
| Other receivables | 16,635,885.82 | 12,159,756.67 |
| Including: Interest receivable | ||
| Dividends receivable | ||
| Reverse-REPO financial assets | ||
| Inventories | 2,280,319,255.52 | 3,096,517,055.33 |
| Contract assets | ||
| Held-for-sale assets | ||
| Non-current assets due within one year | ||
| Other current assets | 659,654,342.93 | 2,055,027,382.63 |
| Total current assets | 9,474,866,301.78 | 11,158,574,785.45 |
| Non-current assets: | ||
| Loans and advances granted | ||
| Debt investment | ||
| Other debt investments | 586,813,657.54 | 298,191,205.49 |
| Long-term receivables | ||
| Long-term equity investment | 65,019,578.66 | 65,600,611.64 |
| Other equity instrument investments | ||
| Other non-current financial assets | ||
| Investment properties | ||
| Fixed assets | 1,278,054,718.16 | 1,291,902,992.54 |
| Construction in progress | 21,688,231.49 | 26,482,779.31 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use asset | 190,934,091.71 | 195,528,644.13 |
| Intangible assets | 445,623,658.16 | 452,200,863.39 |
| Development expenditures | ||
| Goodwill | ||
| Long-term unamortized expenses | ||
| Deferred income tax assets | 408,477,092.55 | 410,974,540.21 |
| Other non-current asset | ||
| Toatl non-current asset | 2,996,611,028.27 | 2,740,881,636.71 |
| Total assets | 12,471,477,330.05 | 13,899,456,422.16 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Central bank loan | ||
| Loans from others | ||
| Transactional financial liabilities |
| Derivative financial liabilities | ||
| Notes payable | 1,578,200,000.00 | 500,250,000.00 |
| Accounts payable | 2,554,956,770.95 | 3,769,700,826.50 |
| Advance receipt | ||
| Contract liabilities | 470,023,043.75 | 893,741,863.21 |
| Proceeds from sale of repurchase financial assets | ||
| Deposit taken and interbank deposit | ||
| Proceeds from security transaction agency | ||
| Proceeds from security underwriting agency | ||
| Employee remuneration payable | 219,734,937.36 | 321,692,953.88 |
| Taxes payable | 231,014,248.04 | 254,094,791.55 |
| Other payables | 99,060,772.22 | 110,605,272.21 |
| Including: Interest payable | ||
| Dividends payable | ||
| Handling fee and commission payable | ||
| Payable reinsurance payment | ||
| Held-for-sale liabilities | ||
| Non-current liabilities for one year | 34,437,379.21 | 29,191,343.78 |
| Other current liabilities | 110,697,928.26 | 189,810,383.37 |
| Total current liabilities | 5,298,125,079.79 | 6,069,087,434.50 |
| Non-current liabilities: | ||
| Reinsurance contract reserve | ||
| Long-term borrowings | ||
| Bonds payable | ||
| Including: preferred shares | ||
| Perpetual bond | ||
| Lease obligation | 152,646,041.84 | 157,420,210.81 |
| Long-term payables | ||
| Long-term employee remuneration payable | 1,626,823.60 | 1,903,631.69 |
| Estimated liabilities | 12,172,333.27 | 12,737,298.24 |
| Deferred income | ||
| Deferred income tax liabilities |
| Non-current liabilities | ||
| Total non-current liabilities | 166,445,198.71 | 172,061,140.74 |
| Total liabilities | 5,464,570,278.50 | 6,241,148,575.24 |
| Owners' equities: | ||
| Share capital | 808,654,476.00 | 808,678,476.00 |
| Other equity instruments | ||
| Including: preferred shares | ||
| Perpetual bond | ||
| Capital reserves | 145,575,590.16 | 122,970,340.27 |
| Minus: treasury share | 59,370,915.23 | 76,159,897.25 |
| Other comprehensive incomes | -30,421,771.31 | -41,522,541.60 |
| Special reserves | ||
| Surplus reserve | 356,924,811.32 | 356,924,811.32 |
| General risk reserve | ||
| Undistributed profit | 5,748,952,012.23 | 6,451,748,564.12 |
| Total owners' equities belonging to parent company | 6,970,314,203.17 | 7,622,639,752.86 |
| Minority shareholders' equities | 36,592,848.38 | 35,668,094.06 |
| Total owners' equities | 7,006,907,051.55 | 7,658,307,846.92 |
| Total liabilities and owners' equities | 12,471,477,330.05 | 13,899,456,422.16 |
Legal representative: Thierry de LA TOUR D’ARTAISE Person in charge of accounting: Xu Bo Person in charge of accountingdepartment: Xu Bo
2. Balance sheet of parent company
Unit: RMB
| Item | June 30, 2022 | January 1, 2022 |
| Current asset: | ||
| Monetary capital | 1,050,757,489.52 | 800,923,960.55 |
| Transactional financial assets | 100,147,324.89 | |
| Derivative financial assets | ||
| Notes receivable | 945,000.00 | 2,997,000.00 |
| Accounts receivable | 589,830,608.64 | 742,333,802.03 |
| Receivables financing | ||
| Advance payment | 21,570,247.56 | 63,620,742.54 |
| Other receivables | 879,855,389.11 | 1,845,295,351.20 |
| Including: Interest receivable | ||
| Dividends receivable | ||
| Inventories | 241,333,189.94 | 240,622,374.15 |
| Contract assets | ||
| Held-for-sale assets | ||
| Non-current assets due within one year | ||
| Other current assets | 564,455,967.74 | 1,889,046,917.63 |
| Total current assets | 3,348,747,892.51 | 5,684,987,472.99 |
| Non-current assets: | ||
| Debt investment | ||
| Other debt investments | 229,911,671.23 | 194,975,863.02 |
| Long-term receivables | ||
| Long-term equity investment | 3,024,414,764.47 | 3,013,961,596.02 |
| Other equity instrument investments | ||
| Other non-current financial assets | ||
| Investment properties | ||
| Fixed assets | 154,201,318.29 | 151,228,257.41 |
| Construction in progress | 6,112,140.82 | 12,559,947.93 |
| Productive biological assets | ||
| Oil and gas assets | ||
| Right-of-use asset | 2,894,545.61 | 3,363,931.38 |
| Intangible assets | 80,291,803.97 | 83,723,923.89 |
| Development expenditures | ||
| Goodwill | ||
| Long-term unamortized expenses | ||
| Deferred income tax assets | 12,251,797.01 | 14,878,870.52 |
| Other non-current assets |
| Total non-current assets | 3,510,078,041.40 | 3,474,692,390.17 |
| Total assets | 6,858,825,933.91 | 9,159,679,863.16 |
| Current liabilities: | ||
| Short-term borrowings | ||
| Transactional financial liabilities | ||
| Derivative financial liabilities | ||
| Notes payable | ||
| Accounts payable | 195,821,905.14 | 193,367,234.90 |
| Advance receipts | ||
| Contract liabilities | 2,398,065.17 | 1,510,782.40 |
| Employee remuneration payable | 40,332,025.87 | 56,501,055.35 |
| Taxes payable | 3,100,858.18 | 31,587,253.36 |
| Other payables | 1,630,691,897.71 | 2,355,630,738.97 |
| Including: Interest payable | ||
| Dividends payable | ||
| Held-for-sale liabilities | ||
| Non-current liabilities for one year | 823,513.46 | 289,557.95 |
| Other current liabilities | 1,048,534.25 | 3,038,481.86 |
| Total current liabilities | 1,874,216,799.78 | 2,641,925,104.79 |
| Non-current liabilities: | ||
| Long-term borrowings | ||
| Bonds payable | ||
| Including: preferred shares | ||
| Perpetual bond | ||
| Lease obligation | 2,034,457.67 | 2,494,235.39 |
| Long-term payables | ||
| Long-term employee remuneration payable | 174,501.03 | 193,670.03 |
| Estimated liabilities | ||
| Deferred income | ||
| Deferred income tax liabilities |
| Non-current liabilities | ||
| Total non-current liabilities | 2,208,958.70 | 2,687,905.42 |
| Total liabilities | 1,876,425,758.48 | 2,644,613,010.21 |
| Owners' equities: | ||
| Share capital | 808,654,476.00 | 808,678,476.00 |
| Other equity instruments | ||
| Including: preferred shares | ||
| Perpetual bond | ||
| Capital reserves | 259,506,303.70 | 236,901,053.81 |
| Minus: treasury share | 59,370,915.23 | 76,159,897.25 |
| Other comprehensive incomes | ||
| Special reserves | ||
| Surplus reserve | 404,339,238.00 | 404,339,238.00 |
| Undistributed profit | 3,569,271,072.96 | 5,141,307,982.39 |
| Total owners' equities | 4,982,400,175.43 | 6,515,066,852.95 |
| Total liabilities and owners' equities | 6,858,825,933.91 | 9,159,679,863.16 |
3. Consolidated profit statement
Unit: RMB
| Item | 2022 Semiannual | 2021 Semiannual |
| I. Total operating incomes | 10,323,979,744.82 | 10,433,875,893.62 |
| Including: Operating income | 10,323,979,744.82 | 10,433,875,893.62 |
| Interest revenue | ||
| Premium earned | ||
| Revenue from handling fees and commission | ||
| II. Total operating costs | 9,158,859,522.93 | 9,374,133,409.86 |
| Including: Operating cost | 7,670,449,954.61 | 7,725,851,457.97 |
| Interest expense | ||
| Expense for handling fees and commission | ||
| Surrender value |
| Net payments for insurance claims | ||
| Net amount of withdrawn reserve fund for insured liability | ||
| Policy dividend expenditures | ||
| Reinsurance expenses | ||
| Taxes and surcharges | 67,500,088.72 | 50,833,199.38 |
| Sales expense | 1,078,585,004.10 | 1,195,543,704.82 |
| Administrative expense | 188,658,026.76 | 214,014,738.06 |
| R&D expense | 194,481,803.42 | 192,490,424.34 |
| Financial expense | -40,815,354.68 | -4,600,114.71 |
| Including: interest expense | 4,810,441.61 | 5,136,071.01 |
| Interest revenue | 32,112,351.33 | 14,007,637.46 |
| Plus: other incomes | 40,687,848.15 | 33,089,410.91 |
| Investment income ("-" for loss) | 38,216,844.32 | 52,771,988.88 |
| Including: investment income on associated enterprise and joint venture | -457,219.85 | 1,025,583.40 |
| Income from derecognition of financial assets measured by amortized cost | ||
| Exchange gain ("-" for loss) | ||
| Net exposure hedging gains ("-" for loss) | ||
| Gains from changes in fair value ("-" for loss) | 550,529.85 | 1,005,713.48 |
| Credit impairment loss ("-" for loss) | 25,222,441.21 | -20,575,682.19 |
| Asset impairment loss ("-" for loss) | -16,045,044.53 | -8,335,090.73 |
| Assets disposal income ("-" for loss) | -193,453.10 | -540,385.03 |
| III. Operating profit ("-" for loss) | 1,253,559,387.79 | 1,117,158,439.08 |
| Plus: Non-operating income | 2,288,254.03 | 2,030,947.54 |
| Minus: non-operating expense | 2,896,308.83 | 4,639,873.99 |
| IV. Total profit ("-" for total loss) | 1,252,951,332.99 | 1,114,549,512.63 |
| Minus: income tax expense | 319,256,554.10 | 250,485,268.05 |
| V. Net profit ("-" for net loss) | 933,694,778.89 | 864,064,244.58 |
| (I) By business continuity | ||
| 1. Net profit under continuing operation ("-" for net loss) | 933,694,778.89 | 864,064,244.58 |
| 2. Net profit under discontinuing operation ("-" for net loss) |
| (II) By ownership | ||
| 1. Net profit belonging to the owners of parent company | 932,849,164.03 | 865,590,446.89 |
| 2. Minority shareholders' profit and loss | 845,614.86 | -1,526,202.31 |
| VI. After-tax net amount of other comprehensive income | 11,179,909.75 | -1,966,964.74 |
| After-tax net amount of other comprehensive income belonging to the owners of parent company | 11,100,770.29 | -1,695,778.42 |
| (I) Other comprehensive incomes that cannot be reclassified into profit and loss | ||
| 1. Remeasured amount of changes in defined benefit plan | ||
| 2. Other comprehensive income that cannot be transferred to gain and loss under the equity method | ||
| 3. Changes in the fair value of other equity instrument investments | ||
| 4. Changes in the fair value of the Company's own credit risk | ||
| 5. Others | ||
| (II) Other comprehensive incomes to be reclassified into the profit and loss | 11,100,770.29 | -1,695,778.42 |
| 1. Other comprehensive income that can be transferred to gain and loss under the equity method | ||
| 2. Changes in the fair value of other debt investments | ||
| 3. Amount of financial assets reclassified into other comprehensive income | ||
| 4. Credit impairment provision for other debt investments | ||
| 5. Cash flow hedging reserve | ||
| 6. Conversion difference of foreign currency financial statements | 11,100,770.29 | -1,695,778.42 |
| 7. Others | ||
| After-tax net amount of other comprehensive income belonging to minority shareholder | 79,139.46 | -271,186.32 |
| VII. Total comprehensive income | 944,874,688.64 | 862,097,279.84 |
| Total comprehensive income attributed to owners of parent company | 943,949,934.32 | 863,894,668.47 |
| Total comprehensive income attributed to minority shareholders | 924,754.32 | -1,797,388.63 |
| VIII. Earnings per share: | ||
| (I) Basic earnings per share | 1.155 | 1.066 |
| (II) Diluted earnings per share | 1.155 | 1.063 |
For enterprise merger under the same control in the current period, the net profit realized by the acquiree before merger was RMB0,and the net profit realized by the acquiree during the prior period was: RMB0.
Legal representative: Thierry de LA TOUR D’ARTAISE Person in charge of accounting: Xu Bo Person in charge of accountingdepartment: Xu Bo
4. Profit statement of the parent company
Unit: RMB
| Item | 2022 Semiannual | 2021 Semiannual |
| I. Operating incomes | 1,118,472,456.99 | 1,353,888,354.10 |
| Minus: Operating cost | 1,025,029,076.41 | 1,160,224,276.22 |
| Taxes and surcharges | 7,884,054.34 | 7,829,816.27 |
| Sales expense | 14,001,016.71 | 35,788,176.87 |
| Administrative expense | 64,126,174.81 | 53,768,220.53 |
| R&D expense | 2,352,554.61 | 22,326,866.27 |
| Financial expense | -27,520,636.18 | 13,837,911.71 |
| Including: interest expense | 6,883,884.15 | 20,972,657.94 |
| Interest revenue | 28,750,182.79 | 8,377,902.92 |
| Plus: other incomes | 6,194,324.12 | 5,944,578.92 |
| Investment income ("-" for loss) | 33,451,552.55 | 41,632,021.76 |
| Including: investment income on associated enterprise and joint venture | -457,219.85 | 1,025,583.40 |
| Income from derecognition of financial assets measured by amortized cost ("-" for loss) | ||
| Net exposure hedging gains ("-" for loss) | ||
| Gains from changes in fair value ("-" for loss) | ||
| Credit impairment loss ("-" for loss) | 8,948,497.00 | -3,266,715.86 |
| Asset impairment loss ("-" for loss) | -162,535.03 | 374,082.16 |
| Assets disposal income ("-" for loss) | -2,477.95 | -128,783.76 |
| II. Operating profit ("-" for loss) | 81,029,576.98 | 104,668,269.45 |
| Plus: Non-operating income | 294,087.79 | 303,976.02 |
| Minus: non-operating expense | 1,642,475.77 | 1,266,531.49 |
| III. Total profit ("-" for total loss) | 79,681,189.00 | 103,705,713.98 |
| Minus: income tax expense | 16,072,382.51 | 25,680,832.65 |
| IV. Net profit ("-" for net loss) | 63,608,806.49 | 78,024,881.33 |
| (I) Net profit under continuing operation ("-" for net loss) | 63,608,806.49 | 78,024,881.33 |
| (II) Net profit under discontinuing operation ("-" for net loss) | ||
| V. After-tax net amount of other comprehensive income |
| (I) Other comprehensive incomes that cannot be reclassified into profit and loss | ||
| 1. Remeasured amount of changes in defined benefit plan | ||
| 2. Other comprehensive income that cannot be transferred to gain and loss under the equity method | ||
| 3. Changes in the fair value of other equity instrument investments | ||
| 4. Changes in the fair value of the Company's own credit risk | ||
| 5. Others | ||
| (II) Other comprehensive incomes to be reclassified into the profit and loss | ||
| 1. Other comprehensive income that can be transferred to gain and loss under the equity method | ||
| 2. Changes in the fair value of other debt investments | ||
| 3. Amount of financial assets reclassified into other comprehensive income | ||
| 4. Credit impairment provision for other debt investments | ||
| 5. Cash flow hedging reserve | ||
| 6. Conversion difference of foreign currency financial statements | ||
| 7. Others | ||
| VI. Total comprehensive income | 63,608,806.49 | 78,024,881.33 |
| VII. Earnings per share: | ||
| (I) Basic earnings per share | ||
| (II) Diluted earnings per share |
5. Consolidated cash flow statement
Unit: RMB
| Item | 2022 Semiannual | 2021 Semiannual |
| I. Cash Flows from Operating Activities: | ||
| Cash received from sales of commodities or rendering of services | 9,104,543,317.02 | 8,500,943,320.64 |
| Net increase of customer deposit and interbank deposit | ||
| Net increase of central bank loans | ||
| Net increase of loans from other financial institutions | ||
| Cash received from original insurance contract premium | ||
| Net cash received from reinsurance | ||
| Net increase of policy-holder deposit and investment |
| Cash receipts from interest, handling charges and commission | ||
| Net increase of loans from others | ||
| Net increment of repurchase capital | ||
| Net cash from security transaction agency | ||
| Tax refund received | 288,937,060.38 | 372,770,395.92 |
| Other cash receipts related to operating activities | 66,261,772.81 | 76,387,133.95 |
| Subtotal of cash inflows from operating activities | 9,459,742,150.21 | 8,950,100,850.51 |
| Cash payments for purchasing commodities and receiving services | 5,387,151,906.60 | 5,643,346,506.88 |
| Net increment of customer loans and advances | ||
| Net increase of central bank deposit and interbank deposit | ||
| Cash payment for insurance indemnities of original insurance contracts | ||
| Net increase of loans to others | ||
| Cash payment of interest, handling fees and commission | ||
| Cash payment of policy dividend | ||
| Cash paid to and on behalf of employees | 973,247,343.65 | 967,472,279.57 |
| Taxes paid | 714,021,716.57 | 628,745,960.07 |
| Other cash payments related to operating activities | 1,076,476,317.06 | 1,410,105,340.54 |
| Subtotal of cash outflows from operating activities | 8,150,897,283.88 | 8,649,670,087.06 |
| Net cash flows from operating activities | 1,308,844,866.33 | 300,430,763.45 |
| II. Cash flows from investing activities: | ||
| Cash received from return of investments | ||
| Cash received from investment income | 151,894,174.39 | 18,883,366.78 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 541,981.84 | 701,751.00 |
| Net cash received from disposal of subsidiaries and other business units | ||
| Other cash receipts related to investing activities | 1,380,000,000.00 | 1,015,003,017.64 |
| Subtotal of cash inflows from investing activities | 1,532,436,156.23 | 1,034,588,135.42 |
| Cash paid for acquiring fixed assets, intangible assets and other long-term assets | 99,411,104.56 | 134,374,987.54 |
| Cash paid for investment | ||
| Net increase of pledge loans | ||
| Net cash paid for acquiring subsidiaries and other business units |
| Other cash payments related to investing activities | 550,000,000.00 | 546,000,000.00 |
| Subtotal of cash outflows from investing activities | 649,411,104.56 | 680,374,987.54 |
| Net cash flows from investing activities | 883,025,051.67 | 354,213,147.88 |
| III. Cash flows from financing activities: | ||
| Cash received from investment by others | ||
| Including: cash received by subsidiaries from minority shareholder investment | ||
| Cash received from obtaining borrowings | ||
| Other cash receipts related to financing activities | 892,000.00 | |
| Subtotal of cash inflows from financing activities | 892,000.00 | |
| Cash paid for debt repayment | ||
| Cash paid for distribution of dividends or profits or for payment of interest | 1,559,494,958.68 | 1,048,601,714.34 |
| Including: dividends or profits paid by subsidiaries to minority shareholders | ||
| Other cash payments related to financing activities | 79,675,573.22 | 257,776,914.61 |
| Subtotal of cash outflows from financing activities | 1,639,170,531.90 | 1,306,378,628.95 |
| Net cash flows from financing activities | -1,639,170,531.90 | -1,305,486,628.95 |
| IV. Impact of change in exchange rate on cash and cash equivalents | 12,171,493.31 | -985,535.81 |
| V. Net increase in cash and cash Equivalents | 564,870,879.41 | -651,828,253.43 |
| Plus: balance of cash and cash equivalents at the beginning of the period | 2,443,731,679.06 | 1,655,785,919.04 |
| VI. Balance of cash and cash equivalents at the end of the period | 3,008,602,558.47 | 1,003,957,665.61 |
6. Cash flow statement of parent company
Unit: RMB
| Item | 2022 Semiannual | 2021 Semiannual |
| I. Cash flows from operating activities: | ||
| Cash received from sales of commodities or rendering of services | 1,324,182,549.43 | 1,104,715,153.93 |
| Tax refund received | 114,517,829.38 | 106,870,814.76 |
| Other cash receipts related to operating activities | 19,758,321.08 | 8,240,439.60 |
| Subtotal of cash inflows from operating activities | 1,458,458,699.89 | 1,219,826,408.29 |
| Cash payments for purchasing commodities and receiving services | 1,012,862,505.92 | 1,136,899,701.62 |
| Cash paid to and on behalf of employees | 106,996,783.81 | 126,403,802.15 |
| Taxes paid | 50,991,057.87 | 63,899,866.91 |
| Other cash payments related to operating activities | 57,637,041.82 | 25,851,310.76 |
| Subtotal of cash outflows from operating activities | 1,228,487,389.42 | 1,353,054,681.44 |
| Net cash flows from operating activities | 229,971,310.47 | -133,228,273.15 |
| II. Cash flows from investing activities: | ||
| Cash received from return of investments | ||
| Cash received from investment income | 150,204,703.19 | 933,661,872.24 |
| Net cash received from disposal of fixed assets, intangible assets and other long-term assets | 14,000.00 | 292,000.00 |
| Net cash received from disposal of subsidiaries and other business units | ||
| Other cash receipts related to investing activities | 1,300,000,000.00 | 400,000,000.00 |
| Subtotal of cash inflows from investing activities | 1,450,218,703.19 | 1,333,953,872.24 |
| Cash paid for acquiring fixed assets, intangible assets and other long-term assets | 29,041,702.26 | 11,901,615.99 |
| Cash paid for investment | ||
| Net cash paid for acquiring subsidiaries and other business units | ||
| Other cash payments related to investing activities | 1,042,829,946.14 | 535,510,506.31 |
| Subtotal of cash outflows from investing activities | 1,071,871,648.40 | 547,412,122.30 |
| Net cash flows from investing activities | 378,347,054.79 | 786,541,749.94 |
| III. Cash flows from financing activities: | ||
| Cash received from investment by others | ||
| Cash received from obtaining borrowings | ||
| Other cash receipts related to financing activities | 1,255,053,202.49 | 890,996,856.45 |
| Subtotal of cash inflows from financing activities | 1,255,053,202.49 | 890,996,856.45 |
| Cash paid for debt repayment | ||
| Cash paid for distribution of dividends or profits or for payment of interest | 1,559,494,958.68 | 1,048,601,714.34 |
| Other cash payments related to financing activities | 58,185,415.23 | 257,776,914.61 |
| Subtotal of cash outflows from financing activities | 1,617,680,373.91 | 1,306,378,628.95 |
| Net cash flows from financing activities | -362,627,171.42 | -415,381,772.50 |
| IV. Impact of change in exchange rate on cash and cash equivalents | 4,142,335.13 | -147,662.14 |
| V. Net increase in cash and cash equivalents | 249,833,528.97 | 237,784,042.15 |
| Plus: balance of cash and cash equivalents at the beginning of the period | 800,923,960.55 | 231,835,282.92 |
| VI. Balance of cash and cash equivalents at the end of the period | 1,050,757,489.52 | 469,619,325.07 |
7. Consolidated statement of changes in owners' equities
Amount of this period
Unit: RMB
| Item | 2022 Semiannual | ||||||||||||||
| Owners' equities belonging to parent company | Minority shareholders' equities | Total owners' equities | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Minus: treasury share | Other comprehensive incomes | Special reserves | Surplus reserve | General risk reserve | Undistributed profit | Others | Subtotal | |||||
| Preferred shares | Perpetual bond | Others | |||||||||||||
| I. Closing balance of last year | 808,678,476.00 | 122,970,340.27 | 76,159,897.25 | -41,522,541.60 | 356,924,811.32 | 6,451,748,564.12 | 7,622,639,752.86 | 35,668,094.06 | 7,658,307,846.92 | ||||||
| Plus: cumulative changes of accounting policies | |||||||||||||||
| Error correction of prior period | |||||||||||||||
| Enterprise merger under the same control | |||||||||||||||
| Others | |||||||||||||||
| II. Opening balance of current year | 808,678,476.00 | 122,970,340.27 | 76,159,897.25 | -41,522,541.60 | 356,924,811.32 | 6,451,748,564.12 | 7,622,639,752.86 | 35,668,094.06 | 7,658,307,846.92 | ||||||
| III. Current period increase ("-" for decrease) | -24,000.00 | 22,605,249.89 | -16,788,982.02 | 11,100,770.29 | -702,796,551.89 | -652,325,549.69 | 924,754.32 | -651,400,795.37 | |||||||
| (I) Total of comprehensive incomes | 11,100,770.29 | 932,849,164.03 | 943,949,934.32 | 924,754.32 | 944,874,688.64 | ||||||||||
| (II) Capital invested and reduced by the owner | -24,000.00 | 22,605,249.89 | -74,974,397.25 | -76,150,757.24 | 21,404,889.90 | 21,404,889.90 | |||||||||
| 1. Common shares invested by shareholders | |||||||||||||||
| 2. Capital invested by other equity instrument holders | |||||||||||||||
| 3. Amount of share-based payment included into owners' equities | -24,000.00 | 22,605,249.89 | -74,974,397.25 | -76,150,757.24 | 21,404,889.90 | 21,404,889.90 | |||||||||
| 4. Others | |||||||||||||||
| (III) Profit distribution | -1,559,494,958.68 | -1,559,494,958.68 | -1,559,494,958.68 | ||||||||||||
| 1. | |||||||||||||||
| Appropriation of surplus reserve | |||||||||||||||
| 2. Appropriation of general risk reserve | |||||||||||||||
| 3. Appropriation of profit to owners (or shareholders) | -1,559,494,958.68 | -1,559,494,958.68 | -1,559,494,958.68 | ||||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal carry-over within owners' equities | |||||||||||||||
| 1. Transfer of capital reserve to capital (or share capital) | |||||||||||||||
| 2. Transfer of surplus reserve to capital (or share capital) | |||||||||||||||
| 3. Surplus reserve to cover losses | |||||||||||||||
| 4. Earnings retained carrying over amount of changes in defined benefit plan | |||||||||||||||
| 5. Earnings retained after carrying over other comprehensive incomes | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserve | |||||||||||||||
| 1. Appropriation of current period | |||||||||||||||
| 2. Application of current period | |||||||||||||||
| (VI) Others | 58,185,415.23 | -58,185,415.23 | -58,185,415.23 | ||||||||||||
| IV. Closing balance of current period | 808,654,476.00 | 145,575,590.16 | 59,370,915.23 | -30,421,771.31 | 356,924,811.32 | 5,748,952,012.23 | 6,970,314,203.17 | 36,592,848.38 | 7,006,907,051.55 |
Amount of last year
Unit: RMB
| Item | 2021 Semiannual | ||||||||||||||
| Owners' equities belonging to parent company | Minority shareholders' equities | Total owners' equities | |||||||||||||
| Share capital | Other equity instruments | Capital reserves | Minus: treasury share | Other comprehensive | Special reserves | Surplus reserve | General risk reserve | Undistributed profit | Others | Subtotal | |||||
| Preferred | Perpetual | Others | |||||||||||||
| shares | bond | incomes | |||||||||||||
| I. Closing balance of last year | 821,083,860.00 | 226,859,041.81 | 412,206,786.34 | -39,031,832.57 | 401,648,181.64 | 6,202,587,444.38 | 7,200,939,908.92 | 35,784,081.11 | 7,236,723,990.03 | ||||||
| Plus: cumulative changes of accounting policies | |||||||||||||||
| Error correction of prior period | |||||||||||||||
| Enterprise merger under the same control | |||||||||||||||
| Others | |||||||||||||||
| II. Opening balance of current year | 821,083,860.00 | 226,859,041.81 | 412,206,786.34 | -39,031,832.57 | 401,648,181.64 | 6,202,587,444.38 | 7,200,939,908.92 | 35,784,081.11 | 7,236,723,990.03 | ||||||
| III. Current period increase ("-" for decrease) | -4,237,199.00 | -109,418,236.42 | -37,684,949.46 | -1,695,778.42 | -176,243,585.79 | -183,011,267.45 | -436,921,117.62 | -1,797,388.63 | -438,718,506.25 | ||||||
| (I) Total of comprehensive incomes | -1,695,778.42 | 865,590,446.89 | 863,894,668.47 | -1,797,388.63 | 862,097,279.84 | ||||||||||
| (II) Capital invested and reduced by the owner | -4,237,199.00 | -109,387,301.34 | -295,430,928.99 | -176,243,585.79 | 5,562,842.86 | 5,562,842.86 | |||||||||
| 1. Common shares invested by shareholders | |||||||||||||||
| 2. Capital invested by other equity instrument holders | |||||||||||||||
| 3. Amount of share-based payment included into owners' equities | -26,000.00 | 5,562,842.86 | -26,000.00 | 5,562,842.86 | 5,562,842.86 | ||||||||||
| 4. Others | -4,211,199.00 | -114,950,144.20 | -295,404,928.99 | -176,243,585.79 | |||||||||||
| (III) Profit distribution | -1,048,601,714.34 | -1,048,601,714.34 | -1,048,601,714.34 | ||||||||||||
| 1. Appropriation of surplus reserve | |||||||||||||||
| 2. Appropriation of general risk reserve | |||||||||||||||
| 3. Appropriation of profit to | -1,048,601,71 | -1,048,601,71 | -1,048,601,7 |
| owners (or shareholders) | 4.34 | 4.34 | 14.34 | ||||||||||||
| 4. Others | |||||||||||||||
| (IV) Internal carry-over within owners' equities | |||||||||||||||
| 1. Transfer of capital reserve to capital (or share capital) | |||||||||||||||
| 2. Transfer of surplus reserve to capital (or share capital) | |||||||||||||||
| 3. Surplus reserve to cover losses | |||||||||||||||
| 4. Earnings retained carrying over amount of changes in defined benefit plan | |||||||||||||||
| 5. Earnings retained after carrying over other comprehensive incomes | |||||||||||||||
| 6. Others | |||||||||||||||
| (V) Special reserve | |||||||||||||||
| 1. Appropriation of current period | |||||||||||||||
| 2. Application of current period | |||||||||||||||
| (VI) Others | -30,935.08 | 257,745,979.53 | -257,776,914.61 | -257,776,914.61 | |||||||||||
| IV. Closing balance of current period | 816,846,661.00 | 117,440,805.39 | 374,521,836.88 | -40,727,610.99 | 225,404,595.85 | 6,019,576,176.93 | 6,764,018,791.30 | 33,986,692.48 | 6,798,005,483.78 |
8. Statement of changes in owners' equities of the parent company
Amount of this period
Unit: RMB
| Item | 2022 Semiannual | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Minus: treasury share | Other comprehensive incomes | Special reserves | Surplus reserve | Undistributed profit | Others | Total owners' equities | |||
| Preferred shares | Perpetual bond | Others | ||||||||||
| I. Closing balance of last year | 808,678,476.00 | 236,901,053.81 | 76,159,897.25 | 404,339,238.00 | 5,141,307,982.39 | 6,515,066,852.95 | ||||||
| Plus: cumulative changes of | ||||||||||||
| accounting policies | ||||||||||||
| Error correction of prior period | ||||||||||||
| Others | ||||||||||||
| II. Opening balance of current year | 808,678,476.00 | 236,901,053.81 | 76,159,897.25 | 404,339,238.00 | 5,141,307,982.39 | 6,515,066,852.95 | ||||||
| III. Current period increase ("-" for decrease) | -24,000.00 | 22,605,249.89 | -16,788,982.02 | -1,572,036,909.43 | -1,532,666,677.52 | |||||||
| (I) Total of comprehensive incomes | 63,608,806.49 | 63,608,806.49 | ||||||||||
| (II) Capital invested and reduced by the owner | -24,000.00 | 22,605,249.89 | -74,974,397.25 | -76,150,757.24 | 21,404,889.90 | |||||||
| 1. Common shares invested by shareholders | ||||||||||||
| 2. Capital invested by other equity instrument holders | ||||||||||||
| 3. Amount of share-based payment included into owners' equities | -24,000.00 | 22,605,249.89 | -74,974,397.25 | -76,150,757.24 | 21,404,889.90 | |||||||
| 4. Others | ||||||||||||
| (III) Profit distribution | -1,559,494,958.68 | -1,559,494,958.68 | ||||||||||
| 1. Appropriation of surplus reserve | ||||||||||||
| 2. Appropriation of profit to owners (or shareholders) | -1,559,494,958.68 | -1,559,494,958.68 | ||||||||||
| 3. Others | ||||||||||||
| (IV) Internal carry-over within owners' equities | ||||||||||||
| 1. Transfer of capital reserve to capital (or share capital) | ||||||||||||
| 2. Transfer of surplus reserve to capital (or share capital) | ||||||||||||
| 3. Surplus reserve to cover losses | ||||||||||||
| 4. Earnings retained |
| carrying over amount of changes in defined benefit plan | ||||||||||||
| 5. Earnings retained after carrying over other comprehensive incomes | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special reserve | ||||||||||||
| 1. Appropriation of current period | ||||||||||||
| 2. Application of current period | ||||||||||||
| (VI) Others | 58,185,415.23 | -58,185,415.23 | ||||||||||
| IV. Closing balance of current period | 808,654,476.00 | 259,506,303.70 | 59,370,915.23 | 404,339,238.00 | 3,569,271,072.96 | 4,982,400,175.43 |
Amount of last year
Unit: RMB
| Item | 2021 Semiannual | |||||||||||
| Share capital | Other equity instruments | Capital reserves | Minus: treasury share | Other comprehensive incomes | Special reserves | Surplus reserve | Undistributed profit | Others | Total owners' equities | |||
| Preferred shares | Perpetual bond | Others | ||||||||||
| I. Closing balance of last year | 821,083,860.00 | 666,767,326.32 | 412,206,786.34 | 410,621,980.00 | 1,255,631,844.17 | 2,741,898,224.15 | ||||||
| Plus: cumulative changes of accounting policies | ||||||||||||
| Error correction of prior period | ||||||||||||
| Others | ||||||||||||
| II. Opening balance of current year | 821,083,860.00 | 666,767,326.32 | 412,206,786.34 | 410,621,980.00 | 1,255,631,844.17 | 2,741,898,224.15 | ||||||
| III. Current period increase ("-" for decrease) | -4,237,199.00 | -284,368,054.46 | -37,684,949.46 | -970,576,833.01 | -1,221,497,137.01 | |||||||
| (I) Total of comprehensive incomes | 78,024,881.33 | 78,024,881.33 | ||||||||||
| (II) Capital invested and reduced by the owner | -4,237,199.00 | -284,337,119.38 | -295,430,928.99 | 6,856,610.61 | ||||||||
| 1. Common shares invested by shareholders | ||||||||||||
| 2. Capital | ||||||||||||
| invested by other equity instrument holders | ||||||||||||
| 3. Amount of share-based payment included into owners' equities | -26,000.00 | 6,856,610.61 | -26,000.00 | 6,856,610.61 | ||||||||
| 4. Others | -4,211,199.00 | -291,193,729.99 | -295,404,928.99 | |||||||||
| (III) Profit distribution | -1,048,601,714.34 | -1,048,601,714.34 | ||||||||||
| 1. Appropriation of surplus reserve | ||||||||||||
| 2. Appropriation of profit to owners (or shareholders) | -1,048,601,714.34 | -1,048,601,714.34 | ||||||||||
| 3. Others | ||||||||||||
| (IV) Internal carry-over within owners' equities | ||||||||||||
| 1. Transfer of capital reserve to capital (or share capital) | ||||||||||||
| 2. Transfer of surplus reserve to capital (or share capital) | ||||||||||||
| 3. Surplus reserve to cover losses | ||||||||||||
| 4. Earnings retained carrying over amount of changes in defined benefit plan | ||||||||||||
| 5. Earnings retained after carrying over other comprehensive incomes | ||||||||||||
| 6. Others | ||||||||||||
| (V) Special reserve | ||||||||||||
| 1. Appropriation of current period | ||||||||||||
| 2. Application of current period | ||||||||||||
| (VI) Others | -30,935.0 | 257,745,979.53 | -257,776, |
| 8 | 914.61 | |||||||||||
| IV. Closing balance of current period | 816,846,661.00 | 382,399,271.86 | 374,521,836.88 | 410,621,980.00 | 285,055,011.16 | 1,520,401,087.14 |
III. Basic Information of the Company
Zhejiang Supor Co., Ltd (hereinafter referred to as "the Company") is transformed on an integral basis from Zhejiang SuporCookware Co., Ltd under the approval of Leading Group for Enterprise Listing of the People's Government of Zhejiang Province withNo. ZSS [2000] 24 approval document. On November 10, 2000, the Company registered at Zhejiang Administration for Industry andCommerce. Registered address: Yuhuan City, Zhejiang Province; head office address: Hangzhou City, Zhejiang Province. TheCompany's parent company is SEB INTERNATIONALE S.A.S whose final parent company is SEB S.A. The Company has a corporatebusiness license numbered 913300007046976861.The Company and its subsidiaries (hereinafter referred to as "Supor") are mainly specialized in the R&D, manufacturing and salesof kitchen utensils, stainless steel products, daily hardware, small domestic appliance and cookware; the products include cookwareand small domestic appliances.The financial statements have been approved by the Board of Directors on August 30, 2022.As of June 30, 2022, there were altogether 21 subsidiaries included into the scope of consolidated financial statement. See Note 9"Equity in other entities" for details.IV. Preparation basis of the financial statements
1. Preparation basis
The financial statements of Supor are prepared based on the continuing operation assumption and actual transactions and itemsand in accordance with the Accounting Standard for Business Enterprises -- Basic Standard issued by Ministry of Finance of thePeople's Republic of China (hereinafter referred to as “the Ministry of Finance”)(Released CZBL No.33, Revised CZBL No.76), and42 specific accounting standards, guidelines for the application of accounting standards for business enterprises, interpretations to theaccounting standards for business enterprises and other provisions released and revised on and after February 15, 2006 (hereinafterreferred to as Accounting Standards for Business Enterprises) and the disclosure provisions of the Regulations of Corporate InformationDisclosure and Preparation by Companies Publicly Issuing Securities No.15 - General Provisions on Financial Reporting (Revised in2014) of the China Securities Regulatory Commission.
Supor has carried out new standards on financial instruments such as Accounting Standards for Business Enterprises No. 22 --Recognition and Measurement of Financial Instruments and Accounting Standards for Business Enterprises No. 14 - Revenue revisedby the Ministry of Finance in 2017 since January 1, 2019 and January 1, 2020 respectively. And since January 1, 2021, the Ministry ofFinance 2018 revised Accounting Standards for Business Enterprises No. 21 - Leasing.
According to the relevant regulations of the accounting standards for business enterprises, Supor's accounting is made on accrualbasis. Except for certain financial instruments, measurements in these financial statements are made on the basis of historical cost. Ifan asset is impaired, corresponding impairment provision will be made in accordance with relevant regulations.
2. Continuing operation
The Company has the ability to continue operations for at least 12 months since the end of the reporting period, and there are noimportant matters affecting the ability to continue operations.
V. Important accounting policies and estimatesSpecific accounting policies and estimates:
Supor has made accounting policies and estimates as to method for accruing provision for bad debts for receivables, method forcalculating inventory value and accruing depreciation provision, depreciation of fixed assets and amortization of intangible assets,recognition time point of revenue and other transactions and items based on the actual production and operation features and theprovisions of related accounting standards for business enterprises. For details, please refer to descriptions of 9 "Financial instruments",12 "Inventory" - (3), 16 "Fixed assets" - (2), 19 "Intangible assets" - (1), and 26 "Revenue" of Note 5.
1. Statement on abiding by the Accounting Standards for Business Enterprises
The financial statement prepared by the Company conforms to the requirements of the Accounting Standards for BusinessEnterprises and has reflected relevant information such as the financial conditions on June 30, 2022, and operating results and cashflow of the first half year of 2022 of the Company and Supor on an authentic and intact basis. In addition, the financial statements ofthe Company and Supor conform to the disclosure requirements of the Regulations of Corporate Information Disclosure andPreparation by Companies Publicly Issuing Securities No.15 - General Provisions on Financial Reporting revised by the ChinaSecurities Regulatory Commission in 2014 and related financial statements and their notes.
2. Accounting period
The accounting period of Supor is divided into annual period and interim period; an interim period refers to a reporting periodwhich is shorter than a whole fiscal year. Supor takes calendar year as the fiscal year, i.e., from January 1 to December 31.
3. Operating cycle
The normal operating cycle means the period from the time when Supor purchases the assets used for processing to the time ofrealizing cash and cash equivalents. Supor takes 12 months as an operating cycle and uses it as a standard for classifying the liquidityof assets and liabilities.
4. Recording currency
RMB is used in the main economic environment in which the Company and its domestic subsidiaries operate and the Companyand its domestic subsidiaries use RMB as the recording currency. Recording currency for foreign subsidiaries of the Company isdetermined as VND, SGD and IDR separately based on the currency in main economic environment in which they operate. Supor usesRMB as the recording currency to prepare the financial statement.
5. Accounting treatment method for the enterprise merger under and not under the samecontrol
Enterprise merger refers to the transactions or events of two or more separate enterprises combing into a reporting entity.Enterprise merger is divided into the enterprise merger under the same control and enterprise merger not under the same control.
For transactions not under the same control, the acquirer will consider whether to choose to use the simplified judgment methodof "concentration test" when determining whether the acquired asset portfolio forms a business. If the portfolio passes the concentrationtest, it is judged not to form a business; otherwise, it should still be judged against business conditions.
When Supor has acquired a group of assets or net assets that do not constitute a business, the purchase cost shall be distributed
according to the relative fair value basis of all identifiable assets and liabilities acquired on the purchase date, and it shall not be handledaccording to the following accounting treatment method of enterprise merger.
(1) Enterprise merger under the same control
If enterprises involved with merger are under the final control of the same party or same multiple parties before and after merger,and the control is not temporary, it belongs to an enterprise merger under the same control. For enterprise merger under the samecontrol, the party which has obtained the control rights for other combining enterprises on the merger date will be considered as theacquirer, and other participating enterprises are the acquiree. The merger date refers to the day when the acquirer actually obtains thecontrol rights of the acquiree.The assets and liabilities obtained by the acquirer shall be measured on the basis of book value of the acquiree on the merger date.As to the difference between the book value of net assets acquired by acquirer and the book value of merger consideration paid by it(or total amount of the book value of shares issued), the capital reserve shall be adjusted correspondingly (share capital premium); theretained earnings will be adjusted as long as capital reserve (share capital premium) is insufficient to be offset.The acquirer's direct expenses incurred from enterprise merger shall be included into the current profits and losses at the time ofoccurrence.
(2) Enterprise merger not under the same control
If enterprises involved with merger are not under the final control of the same party or same multiple parties before and aftermerger, it belongs to an enterprise merger not under the same control. For enterprise merger not under the same control, the party whichhas obtained the control rights for other combining enterprises on the purchase date will be considered as the acquirer, and otherparticipating enterprises are the acquiree. The purchase date refers to the day when the acquirer obtains the control right over theacquiree.
As for enterprise merger not under the same control, the merger costs include the assets paid by the acquirer, the liabilities accruedand assumed, as well as the fair value of the equity security issued for obtaining acquiree's control right on the purchase date; theintermediary fees, such as auditing, legal service and evaluation and consulting, and other related administrative expenses for theenterprise merger shall be included into the current profits and losses at the time of occurrence. Transaction cost of equity securities ordebt securities issued by the acquirer as merger consideration shall be included into initial recognition amount of the equity securitiesor debt securities. Contingent consideration involved shall be included into the merger cost according to the fair value at the purchasedate; if new or further proofs appearing within 12 months after the purchase date show that the contingent consideration needs to beadjusted, the consolidation goodwill shall be adjusted correspondingly. The merger costs incurred by the acquirer and the identifiablenet assets obtained in the merger shall be measured at the fair value on the purchase date. The difference between the merger cost andthe fair value of the identifiable net assets of the acquiree obtained in the merger on the purchase date is recognized as goodwill. If themerger cost is lower than the fair value of identifiable net assets of the acquiree during merger, the measurement of the identifiableassets of the acquiree obtained, liabilities or fair value of contingent liabilities and the merger costs shall be reviewed firstly. If themerger cost is still lower than the fair value of identifiable net assets of the acquiree during merger, the difference shall be includedinto the current profits and losses.
If the deductible temporary difference of the acquiree gained by acquirer fails to be confirmed on the purchase date due to theinconformity of the recognition condition of deferred income tax assets, and in case new or further information obtained indicates thatthe relevant conditions on the purchase date have existed within 12 months after the purchase date, and it is predicted that the economicbenefits brought by the acquiree from deductible temporary differences can be realized on the purchase date, relevant deferred incometax assets shall be confirmed, and at the same time, the goodwill shall be reduced; if the goodwill is insufficient for offset, thedifferential part shall be confirmed as the current profits and losses; except for above conditions, in case the deferred income tax assetsare confirmed to be related to the enterprise merger, they shall be included into the current profits and losses.
As for enterprise merger not under the same control realized step by step through multiple transactions, it shall judge whether themultiple transactions belong to the "package deal" according to No. 5 Notice about Printing and Issuing Accounting Standards forBusiness Enterprises Explanation in Ministry of Finance (CK [2012] No.19) and the judgment standard (refer to the Note 5. 6
"Preparation method for consolidated financial statements" (2)) about "package deal" in Article 51 of the Accounting Standards forBusiness Enterprises No. 33 -- Consolidated Financial Statement. If the multiple transactions belong to the "package deal", refer to theabove descriptions of the part and Note 5. 15 "Long-term equity investment" to conduct the accounting treatment; for those notbelonging to "package deal", it shall distinguish the individual financial statement and consolidated financial statement to conductrelevant accounting treatment:
The sum of book value of the acquiree's equity investment held prior to the purchase date and the newly investment cost on thepurchase date in the individual financial statement shall be regarded as the initial investment cost of such investment; in case that theequity of the acquiree held before the purchase date is involved in other comprehensive incomes, when disposing the investment, othercomprehensive income related shall be converted into current investment incomes.In consolidated financial statements, the equity of the acquiree held before the purchase date shall be measured again accordingto the fair value of the equity at the purchase date, and the difference between fair value and its book value shall be included into thecurrent investment income; in case that the equity of the acquiree held before the purchase date is involved in other comprehensiveincomes, other comprehensive income related shall be converted into the current investment incomes of the purchase date.
6. Preparation method for consolidated financial statements
(1) Determination principles of consolidated financial statement
The merger scope of the consolidated financial statements shall depend on the control. Control refers to the power of Supor overthe investee. The Group can enjoy variable return through participating in related activities of the investee and has the ability of usingits power over the investee to influence the return amount. The merger scope includes the Company and all its subsidiaries. Subsidiariesare entities controlled by Supor.
Supor will make a re-evaluation if the change in the relevant facts and circumstances leads to the change of the relevant elementsinvolved in the above definition of control.
(2) Preparation method for consolidated financial statements
From the date of obtaining actual control right of subsidiaries' net assets and production operation decision, Supor will begin toinclude it into the merger scope; subsidiaries will not be included into the merger scope from the date when the Company loses itsactual control right. As for the disposed subsidiaries, the operating results and cash flow before disposal date have been properlyincluded into the consolidated profit statement and consolidated cash flow statement; as for subsidiaries disposed in the current period,the beginning amount of the consolidated balance sheet will not be adjusted. As for subsidiary increased due to the enterprise mergernot under the same control, its operating results and cash flow after the purchase date have been properly included into the consolidatedprofit statement and consolidated cash flow statement, and the beginning amount and contrast balance of the consolidated financialstatement shall not be adjusted. As for subsidiary increased due to the enterprise merger under the same control and the acquiree undermerger, the operating results and cash flow from the beginning of the current period of the merger to the merger date have been properlyincluded into the consolidated profit statement and the consolidated cash flow statement, and the contrast balance of the consolidatedfinancial statement shall be adjusted simultaneously.
When consolidated financial statements are prepared, in case the accounting policies or accounting periods employed by thesubsidiary and the Company are different, it's required to make necessary adjustment on the subsidiary's financial statements accordingto the Company's accounting policy and accounting period. As to the subsidiary acquired by the enterprise merger not under the samecontrol, it's required to adjust its financial statement on the basis of fair value of identifiable net assets at the purchase date.
All significant current balance and transaction and unrealized profits in the Group are offset in the preparation of consolidatedfinancial statements.
The shareholders' equities and current net profits and losses of subsidiaries that do not belong to the part owned by the Companyshall be separately listed in the shareholders' equities and net profits in the consolidated financial statement as the minority shareholders'equities and profits and losses. The share in the current net profit or loss of the subsidiary that belongs to minority shareholders' equities
shall be set out as "minority shareholders' profit and loss" under net profit in the consolidated profit statement. In case the losses of thesubsidiary shared by minority shareholders exceed the share that shall be enjoyed by minority shareholders in the subsidiary'sshareholders' equities at the beginning of the year, the minority shareholders' equities shall be offset.When the control right of the original subsidiary is lost due to disposal of partial equity investment or other reasons, the residualequity shall be remeasured at its fair value on the date of loss of control right. The difference between the sum of the considerationacquired by equity disposal and the fair value of residual equity and the share of net assets of the original subsidiary that shall beenjoyed and is calculated continuously from the purchase date according to the original shareholding ratio shall be included into theinvestment income of the current period when the control right is lost. As for other comprehensive incomes related to the equityinvestment of the original subsidiary, when the control right is lost, the accounting treatment shall be carried out on the same basis asthe subsidiary's direct disposal of relevant assets or liabilities. Thereafter, the residual equity of this part shall be further measured inaccordance with Accounting Standards for Business Enterprises No. 2 -- Long-term Equity Investment or Accounting Standards forBusiness Enterprises No. 22 -- Recognition and Measurement of Financial Instruments. As for details, please refer to Note 5. 15 "Long-term equity investment" or Note 5. 9 "Financial instruments".If Supor disposes the equity investment of subsidiary step by step via multiple transactions until losing the control right, it isnecessary to distinguish whether transactions for disposal to the equity investment of subsidiary until losing the control right belong tothe package deal. When the disposal of the articles, conditions and the economic impact of various transactions for the equity investmentof the subsidiary is subject to one or more of the following conditions, it generally indicates that it shall conduct accounting treatmentby taking the multiple transactions as a package deal: ① These transactions are considered to be concluded at the same time or madein the case of considering mutual influence; ② These transactions as a whole can reach a complete business result; ③ The occurrenceof a transaction depends on the occurrence of at least one other transaction; ④ One transaction alone is not economical, but when beingconsidered together with other transactions, it is economical. If it is not package deal, every transaction will be conducted by theaccounting treatment according to the following suitable principles, namely, "partially dispose the long-term equity investment ofsubsidiary when the control right is not lost" (See Note 5. 15 "Long-term equity investment" (2), (d)) and "lose the control right of theoriginal subsidiary due to disposal of partial equity investment or other reasons" (see previous paragraph). If all transactions from thedisposal of equity investment in subsidiaries to the loss of control right are package deals, such transactions are regarded as a transactionthat disposes the subsidiary and loses the control right; however, the difference between the disposal price and the subsidiary's net assetshares enjoyed corresponding to disposing investment before losing the control right shall be recognized as other comprehensiveincomes in the consolidated financial statement, which shall be transferred into the current profits and losses of losing the control rightwhen the control right is lost.
7. Determining standards for cash and cash equivalents
Cash and cash equivalents of Supor includes cash on hand and the deposit that can be used for making payment at any time aswell as investments that are held by Supor, have a short term (generally mature within 3 months since the purchase date) and strongliquidity, can be converted into the cash of known amount easily, and have small risks in value change.
8. Foreign currency business and foreign currency statement conversion
(1) Conversion method for foreign currency transaction
Upon initial recognition, the foreign currency transactions occurring in Supor are converted into recording currency amounts atthe spot rate prevailing on the transaction date (usually the central parity of the exchange rate quoted on the day of issuance by thePeople's Bank of China, the same below).
(2) Conversion method for foreign currency monetary items and foreign currency non-monetary items
For the balance sheet date, the spot rate on the balance sheet date will be adopted in the conversion of the foreign currencymonetary items. In terms of the resulting exchange differences: ① The exchange difference of special foreign currency borrowingsrelated to acquiring and constructing assets which meet capitalization conditions is disposed on the principle of the capitalization ofborrowing expense; and ② foreign currency monetary items measured at the fair value with their changes included into othercomprehensive incomes, except that the exchange difference created by other book balance changes other than by amortized costs(including decrease in value) is included into other comprehensive incomes, are included into the current profits and losses.As to foreign currency non-monetary items measured by historical cost, the amount in the recording currency converted at thespot rate on the transaction date is still employed for measurement; as to foreign currency non-monetary items measured by fair value,it's required to employ the spot rate at the fair value confirmation date for conversion, and the resulting exchange difference falls intoequity instrument measured at the fair value with their changes included into other comprehensive incomes, which shall be includedinto other comprehensive incomes. Other differences are included into the current profits and losses.
(3) Conversion method of foreign currency financial statements
The foreign currency financial statement of overseas business is converted to RMB statement with the following method: theassets and liabilities in the balance sheet shall be converted based on the spot rate on the balance sheet date; as for shareholders' equities,except the "undistributed profits", other items shall be converted by the spot rate on the date of occurrence. Items under revenue andcost in income statement shall be translated according to the spot rate at the transaction date. The undistributed profits at the beginningof the year is the year-end undistributed profit after conversion of last year; the year-end undistributed profit is calculated and presentedaccording to the profit distribution of each item after conversion; the balance of the total amount among the assets and liabilities aswell as shareholders' equities after conversion serves as "conversion difference in foreign currency statement" and is recognized asother comprehensive income. For disposal of overseas business and the loss of control right, the conversion difference in foreigncurrency statement related to the overseas business and presented under the shareholders' equities in the balance sheet is transferredwholly or according to the disposal ratio of the overseas business into the disposal of current profits and losses.
Foreign cash flows and cash flows of subsidiaries overseas are converted based on spot rate on the occurring date of cash flows.The effect of changes in the exchange rate on cash is listed separately in the cash flow statement as an adjustment item.
The beginning amount of the year and actual amount of the previous year shall be presented according to the amount afterconversion of financial statement of last year.
In case of loss of control right of overseas business due to disposal of Supor's entire owners' equities in overseas business, or thedisposal of partial equity investment or other reasons, the foreign currency conversion difference listed in the shareholders' equitiesitems in the balance sheet, related to the overseas business and attributable to owners' equities belonging to parent company shall betotally converted into the current disposal profits and losses.
In case of decrease of the ratio of overseas business, but no loss of control right due to disposal of partial equity investment orother reasons, the conversion difference related to the disposal of part of related currency in the overseas business shall be attributableto the minority shareholders' equities, and not converted into the current profits and losses.
If there are any foreign currency monetary items that substantially constitute net investment in overseas businesses, the exchangedifference generated due to the exchange rate change in the consolidated financial statements shall be determined to othercomprehensive incomes as "conversion difference in foreign currency statements"; when disposing overseas business, it shall beincluded into the current disposal profits and losses.
9. Financial instrument
When Supor becomes one party of financial instrument contract, it's required to recognize financial assets or financial liabilities.
(1) Classification, recognition and measurement of financial assets
Based on the business model for managing financial assets and the contracted cash flow features of financial assets, Supor dividesthe financial assets into: financial assets measured by amortized cost, financial assets measured at the fair value with their changesincluded into other comprehensive incomes, financial assets measured at the fair value with their changes included into the currentprofits and losses.The business model for managing financial assets means that how Supor manages its financial assets, so as to generate cash flows.Through business model, it can be determined that whether the cash flow of financial assets managed by Supor is from the collectionof contractual cash flow, sales of financial assets, or both. Supor, based on the objective facts and specific business objectives offinancial asset management determined by key management personnel, makes decisions on the business model for managing financialassets.Supor evaluates the contractual cash flow characteristic of financial assets to determine whether the contractual cash flowgenerated by the relevant financial assets on the specific date is only the payment of the principal and the interest on the basis of theoutstanding principal amount. Wherein, the principal refers to the fair value of financial assets at initial recognition; the interest includesthe consideration of the time value of money, the credit risk related to the outstanding principal amount for a specific period, and otherbasic borrowing risks, costs, and profits. Furthermore, Supor evaluates the contract terms that are likely to cause changes in thedistribution of time or amount of the contractual cash flow of financial assets, to determine whether the terms satisfy the requirementsof the above contractual cash flow characteristics.Unless Supor changes the business model of the financial asset management, all influenced financial assets will be reclassified onthe first day of the first reporting period after the business model changes under such conditions. Otherwise, the financial assets cannotbe reclassified after the initial recognition.Financial assets shall be measured by fair value during initial recognition. As to financial assets measured at the fair value withtheir changes included into the current profits and losses, related transaction cost shall be included into the current profits and lossesdirectly; as to other categories of financial assets, related transaction cost shall be included into initial recognition amount. Accountsreceivable or notes receivable that are from sale of products or rendering of labors, and do not include or take into account significantfinancing parts are taken as initial recognition amount by Supor based on the consideration amount that the Group is entitled to receive.(a) Income from derecognition of financial assets measured by amortized costThe business model of Supor to manage financial assets measured by amortized cost is aimed at receiving contracted cash flows;the contracted cash flow features of such financial assets are consistent with basic loan arrangements, that is, cash flows generated atspecific date are only payment of principal and interests for outstanding principal amount. Effective interest method is used by Suporto carry out subsequent measurement of such financial asset according to the amortized cost, and the gains or losses arising fromamortization and impairment are included into the current profits and losses.(b) Financial assets measured at the fair value with their changes included into other comprehensive incomes,The business model of Supor to manage such financial assets is aimed at receiving contracted cash flows as well as sales; thecontract cash flow features of such financial assets are consistent with basic loan arrangements. Supor measures such financial assetsat fair value with their changes included into other comprehensive income, but impairment losses or gains, exchange gains and losses,and interest revenues calculated based on effective interest method are included into the current profits and losses. At the time ofderecognition of such financial assets, the accumulated gains or losses included into other comprehensive income before will be shiftedfrom other comprehensive income and included into the current profits and losses.For non-tradable equity instrument investments, Supor may, at the initial recognition, irrevocably designate it as the financialassets measured at the fair value with their changes included into other comprehensive incomes. The assignment is based on theindependent investment and related investment conforms to the definition of equity instruments from the issuer's point of view. Suporincludes the related dividend revenue of such financial assets into the current profits and losses with the change in fair value includedinto other comprehensive income. At the time of derecognition of such financial assets, the accumulated gains or losses included into
other comprehensive income before will be shifted to retained earnings from other comprehensive income but not included into thecurrent profits and losses.(c) Financial assets measured at the fair value with their changes included into the current profits and losses.Supor recognizes financial assets that are not measured by amortized cost nor at fair value with changes included into othercomprehensive incomes as the financial assets measured at fair value with their changes included into the current profits and losses. Inaddition, during initial recognition, in order to eliminate or significantly reduce accounting mismatches, Supor designates part of thefinancial assets as financial assets measured at the fair value with their changes included into the current profits and losses. After theinitial recognition, such financial assets are subject to the follow-up measurement as per fair value by Supor and the gains or lossesgenerated (including the interest and dividend revenue) are included into current profits and losses unless such financial assets are apart of the hedging relationship.
(2) Classification, recognition and measurement of financial liabilities
Financial liabilities are classified into financial liabilities measured at the fair value with their changes included into the currentprofits and losses, financial guarantee liabilities and other financial liabilities during initial recognition. As to financial liabilitiesmeasured at the fair value with their changes included into the current profits and losses, related transaction cost shall be included intothe current profits and losses directly; as to other financial liabilities, related transaction cost shall be included into initial recognitionamount.(a) Financial liabilities measured at the fair value with their changes included into the current profits and lossesFinancial liabilities measured at the fair value with their changes included into the current profits and losses include financialliabilities held for trading (including derivatives that are classified as financial liabilities) and financial liabilities that are designated tobe measured at the fair value with their changes included into the current profits and losses during initial recognition.Financial liabilities held for trading (including derivatives that are classified as financial liabilities) are measured subsequently atfair value and except for those related to hedge accounting, changes in fair value are included into current profits and losses.For financial liabilities measured at the fair value with their changes included into the current profits and losses, changes in theirfair value caused by changes in Supor's own credit risk are included into other comprehensive income, and when such liabilities arederecognized, accumulated changes in their fair value caused by changes in the Group's own credit risk that is included into othercomprehensive income are transferred to retained earnings. The remaining changes in fair value are included into the current profitsand losses. Remaining fair value changes are included into current profits and losses. If the treatment of impact of changes in creditrisk of these financial liabilities in the above manner will cause or expand accounting mismatches in profit or loss, Supor will includeall gains or losses of such financial liabilities (including impact of changes in the Company's own credit risk) in the current profits andlosses.(b) Financial guarantee liabilitiesA financial guarantee contract refers to the contract that requires Supor to pay a specific amount to the contract holder who hassuffered a loss when the specific debtor fails to pay the debt in accordance with the original or modified debt instrument terms at thetime of expiry.After the initial recognition, the relevant incomes of the financial guarantee contracts shall be amortized and included into thecurrent profits and losses pursuant to accounting policy set forth in Note 5. 26 "Revenues". Financial guarantee liabilities will be treatedwith subsequent measurement as per the loss provision determined as per the impairment principle of financial instruments, and thebalance after deducting the accumulative amortized amount determined as per the financial guarantee contract with the initialrecognition amount, whichever is higher.(c) Other financial liabilitiesIn addition to financial liabilities and financial guarantee contracts as a result of financial asset transfers that are not in line withderecognition condition or continuous involvement in transferred financial asset, other financial liabilities are classified as financial
liabilities measured at amortized cost and measured subsequently at amortized cost, and gains or losses arising from derecognition oramortization of such liabilities are included into the current profits and losses.
(3) Recognition basis and measurement method of the transfer of financial assets
If financial assets meet one of the following conditions, derecognition of such financial assets will be carried out: ① the contractualright to receive cash flow from the financial assets is terminated; ② the financial assets have been transferred and almost all the risksand rewards in the ownership of the financial assets are transferred to the transferee; ③ the financial assets have been transferred and,although the Group has neither transferred nor retained almost all risks and rewards in the ownership of the financial assets, it haswaived its control over the financial assets.If the Group neither transfers nor retains almost all the risks and rewards in the ownership of the financial assets and does notrelinquish control over the financial assets, the financial assets shall be recognized according to the degree of continuous involvementof the financial assets transferred, and the relevant liabilities shall be recognized accordingly. Degree of continuous involvement of thefinancial assets transferred is the risk level of the Group due to changes in value of such financial assets.In case whole transfer of financial assets satisfies the derecognition condition, the difference between the sum of the book valueof financial assets transferred and consideration received due to the transfer and the sum of changes in fair value original included intoother comprehensive income shall be included into current profits and losses.In case partial transfer of financial assets satisfies the derecognition condition, book value of the financial assets transferred shallbe amortized between the derecognition part and the part without derecognition according to their own fair value, and the differencebetween the sum of the consideration received for the transfer and accumulated amount of the change in fair value to be amortized toderecognition part and originally included into other comprehensive income, and the foregoing book value amortized shall be includedinto the current profits and losses.For financial assets sold with right of recourse, or to transfer financial assets by endorsement, Supor needs to determine whetheralmost all risks and rewards related to ownership of such financial assets have been transferred. If almost all risks and rewards relatedto the ownership of such financial assets are transferred to the transferee, derecognition of such financial assets shall be conducted;derecognition of such financial assets shall not be conducted if the risks and rewards related to the ownership of such financial assetsare reserved; if the risks and rewards related to the ownership of such financial assets are not transferred nor reserved, it needs todetermine whether the Company keeps its control over such assets and make accounting treatment based on principles as described inthe foregoing paragraphs.
(4) Derecognition of financial liabilities
In case the current obligations of financial liabilities (or part of the financial liabilities) have been terminated, Supor will carry outderecognition of such financial liabilities or part of them. In case Supor (borrower) signs an agreement with the debtor to replace theoriginal financial liabilities by means of bearing new financial liabilities, and contract clauses related to the new financial liabilitiesand original financial liabilities are different in essence, it's required to carry out derecognition of original financial liabilities andrecognize the new financial liabilities simultaneously. If Supor substantially modifies the contract terms of the original financial liability(or part of it), the original financial liability is derecognised and a new financial liability is recognized in accordance with the revisedterms.
In case derecognition is carried out for the whole or part of financial liabilities, the difference between their book value and theconsideration paid (including non-cash assets transferred out or liabilities assumed) shall be included by Supor in the current profitsand losses.
(5) Offset of financial assets and financial liabilities
In case Supor has the legal right of offsetting the financial assets and financial liabilities recognized and such legal right isexecutable now, and Supor plans to carry out settlement by net amount or realize the financial assets and pay off the financial liabilities
simultaneously, the net amount after mutual offset of such financial assets and financial liabilities shall be set out in the balance sheet.Otherwise, financial assets and financial liabilities shall be set out in the balance sheet respectively and will not be offset mutually.
(6) Equity instruments
An equity instrument refers to a contract that can prove the ownership of residual interest in assets after Supor deducts all liabilities.Supor's issuing (including refinancing), repurchase, sale or cancellation of equity instruments is treated as changes in equity, andtransaction costs related to equity transactions are deducted from equity. Supor does not determine changes in fair value of equityinstruments.Distribution of dividends (including "interest" from instruments classified as equity instruments) from the equity instrumentsduring the existence of Supor is treated as profit distribution.
10. Financial assets impairment
Financial assets with impairment loss confirmed by Supor are financial assets measured with amortized cost and debt instrumentinvestment measured at the fair value with their changes included into other comprehensive incomes, mainly including notes receivable,accounts receivable, receivables financing, other receivables, and other debt investments. Moreover, as for contract assets and somefinancial guarantee contracts, it's necessary to calculate and withdraw impairment provision and recognize credit impairment lossespursuant to accounting policy set forth in this part.
(1) Recognition method of impairment provision
The above items are accrued for impairment provision and credit impairment losses by Supor in accordance with applicableexpected credit loss measure methods (general or simplified) based on the expected credit loss.
Credit loss refers to the difference between all contractual cash flows discounted as per the original effective interest rate andreceivable from the contract and all cash flows expected to be received by Supor, namely, the present value of a shortage of cash.Wherein, the purchased or underlying financial assets with credit impairment of Supor shall be discounted as per effective interest ratebased on credit adjustment.
The general method for measuring expected credit loss is as follows, Supor evaluates whether credit risk of financial assets(including contract assets and other applicable items, the same below) has remarkably increased after initial recognition on each balancesheet date. In case of credit risk having remarkably increased after initial recognition, Supor will measure loss provision as per theamount equivalent to expected credit loss in the whole period of existence; in case of credit risk failing to remarkably increase afterinitial recognition, Supor will measure loss provision as per the amount equivalent to expected credit loss in the next 12 months. Atthe time of evaluating expected credit loss, Supor considers all reasonable and well-founded information, including forward-lookinginformation.
When the expected credit loss is measured, the longest period to be considered by Supor is the longest contract period when theenterprise faces the credit risk (including considering the renewal option). The expected credit loss of the whole duration refers to theexpected credit loss arising from all possible events of default regarding financial instrument occurring during the entire duration. Theexpected credit loss within the next 12 months refers to the expected credit loss caused by possible event of default concerning financialinstrument within 12 months after the balance sheet date (the expected duration, if the expected duration of the financial instrument isless than 12 months) which is part of the expected credit losses during the entire duration.
For the financial instrument with a lower credit risk on the balance sheet date, Supor assumes that its credit risks have not increasedsignificantly since the initial recognition, and measures the loss provisions according to the expected credit losses of the next 12 months.
(2) Standard for judging whether credit risk has remarkably increased after initial recognition
In case that probability of default of one financial asset confirmed on the balance sheet date in the expected period of existence isobviously higher than that confirmed at the moment of initial recognition in the expected period of existence, it means credit risk of
such financial asset remarkably increases. The changes of default risk within the next 12 months are adopted by Supor other thanspecial cases as reasonable estimate in the entire duration, ensuring whether the credit risk has increased significantly since the initialrecognition.
(3) Combinatorial method of appraising future credit risk based on portfolio
Supor appraises the credit risk of the financial asset item of significantly different credit risks, such as: receivables from the relatedparties; receivables disputed with the opposite side or involving litigation or arbitration; there have been obvious signs showing thatthe debtor possibly is not able to perform the repayment obligations of receivable amounts, etc.
Except financial assets of individual credit risk assessment, Supor divides financial assets into different groups based on thecommon risk characteristics and appraises credit risks based on portfolio.
(4) Accounting treatment method of financial assets impairment
The expected credit losses of all kinds of financial assets are calculated by Supor at the end of the year. If the estimated credit lossis greater than the carrying amount of the current impairment provision, the difference is recognized as impairment loss; If not, it isrecognized as impairment profits.
(5) Test method of credit losses of all kinds of financial assets
(a) Notes receivable
Supor measures loss provision for notes receivable based on the amount equivalent to predicted credit loss in the whole period ofexistence.(b) Accounts receivable and contract assets
For accounts receivable and contract assets not containing significant financing part, Supor measures its loss provisions based onthe amount of expected credit losses during the entire duration.
For accounts receivable and contract assets containing significant financing part, Supor always selects to measure its lossprovisions based on the amount of expected credit losses during the duration.
The other accounts receivables other than individual credit risk assessment are divided into different portfolios based on theircredit risk characteristics:
| Item | Basis for determination of portfolio |
| Accounts receivable | |
| Portfolio 1: age portfolio | Aging of receivables is used as the credit risk feature for this portfolio. |
| Portfolio 2: low-risk portfolio | The portfolio includes low-risk amounts such as the payment of third-party commodities. |
| Portfolio 3: merged related parties portfolio | This portfolio includes current amount between related parties within the merger scope of amounts receivable. |
(c) Other receivables
The impairment loss is measured by Supor in accordance with the amount of expected credit loss equivalent to that within thenext 12 months or the entire duration based on whether the credit risk of other receivables has increased significantly since the initialrecognition. The other receivables other than individual credit risk assessment are divided into different portfolios based on their creditrisk characteristics:
| Item | Basis for determination of portfolio |
| Portfolio 1: age portfolio | Aging of receivables is used as the credit risk feature for this portfolio. |
| Portfolio 2: low-risk portfolio | The portfolio includes low-risk amounts such as dividends receivable and related receivables from government departments. |
| Portfolio 3: merged related parties portfolio | This portfolio includes current amount between related parties within the merger scope of amounts receivable. |
11. Receivables financing
The notes receivable and accounts receivable measured at the fair value with their changes included into other comprehensiveincomes are listed as receivables financing with a term of less than one year (including one year) from the initial recognition. Forrelated accounting policies, please refer to Note 5. 9 "Financial instruments" and Note 5. 10 "Financial assets impairment".
12. Inventories
(1) Classification
Inventory mainly includes raw materials, unfinished products, finished products, low-value consumables and packing materials.
(2) Valuation method for the acquisition and distribution of inventory
When inventories are acquired, they are priced at actual costs. Inventory costs include procurement costs, processing costs, andother costs. When inventories are used and distributed, the price is calculated by the one-off weighted average method at the end of amonth.
(3) Method of recognizing net realizable value and accruing depreciation reserve of inventories
Net realizable value refers to the amount of the estimated selling price of inventories deducted by estimated costs to be incurredupon completion, estimated sales expenses and related taxes in daily activities. For the inventories held for executing the sales contractor labor contract, the net realizable value shall be measured based on the contract price. When the amount of inventories held is morethan the ordering amount in the sales contract, the net realizable value of the excess shall be measured based on the general sales price.The determination of realizable net value of the inventory shall be based on the concrete evidence acquired and consider the purposeof holding inventory, and impacts of the events after the balance sheet date.
At the balance sheet date, the inventory shall be measured according to the cost or realizable net value, subject to the lower one.In case the cost is higher than realizable net value, inventory depreciation reserves shall be withdrawn. The inventory depreciationreserve is usually withdrawn based on the difference between the cost of a single inventory item and its net realizable value.
After the inventory depreciation reserve is withdrawn, if factors that previously reduced the value of inventory disappear, causingnet realizable value of inventory to be higher than its book value, the original inventory depreciation reserves will be reversed and theamount reversed is included into current profits and losses.
(4) Inventory system is perpetual inventory system
(5) Amortization method for low-value consumables and packing materials
Low-value consumables shall be amortized by one-off amortization method during the requisition or be amortized during usage;packing materials shall be amortized by one-off amortization method during the requisition.
13. Contract assets
Supor lists as contract assets in the balance sheet the right that the customer has not paid the contract consideration, but Suporhas fulfilled the performance obligations according to the contract and does not belong to the unconditional (only depending on thepassage of time) collection right from the customer. Contract assets and contract liabilities under the same contract are reported in netamount, and contract assets and contract liabilities under different contracts are not offset.
For the determination and accounting treatment methods of expected credit loss of contract assets, please refer to Note 5. 10"Financial assets impairment".
14. Held-for-sale assets and disposal group
In case Supor mainly recovers the book value by selling (including non-monetary assets exchange of commercial essence, thesame below) rather than using a non-current asset or disposal group continuously, it will be classified as held-for-sale category. Specificstandard refers to meeting the following conditions at the same time: one non-current asset or disposal group can be immediately soldunder the current situation pursuant to the convention for selling such asset or disposal group in similar transaction; Supor has made aresolution about sale plan and got certain of purchase commitment; It's predicted that the sale will be completed within one year.Among them, disposal group refers to a group of assets that will be disposed together as a whole by selling or other means in atransaction and the liabilities directly related to these assets and transferred in the transaction. In case the asset group or asset groupportfolio where the disposal group belongs has amortized the goodwill acquired in enterprise merger according to Accounting Standardsfor Business Enterprises No. 8 -- Impairment of Assets, the disposal group shall include the goodwill amortized to it.If there are non-current assets or disposal groups purchased under agreements to resell during initial measurement or on thebalance sheet day based on remeasurement of Supor, and if the book value is higher than the net amount by deducting the sellingexpenses with the fair value, the book value shall be written down and be equal to the net amount by deducting the selling expenseswith the fair value. The write-down amount shall be confirmed as the asset impairment loss and shall be included into the current profitsand losses. At the same time, the impairment provision of the held-for-sale assets shall be calculated and withdrawn. For the disposalgroup, it shall deduct the book value of the goodwill in the disposal group with the asset impairment loss confirmed, and then deductthe book value of each non-current asset in the disposal group in proportion conforming to the measurement provisions of AccountingStandards for Business Enterprises No. 42 -- Non-current Assets and Disposal Groups Held for Sale and Termination of BusinessOperation (hereinafter referred to as "Standard for Held-for-sale Non-current Assets"). For the held-for-sale disposal group, if the netamount after deducting the selling expenses from the fair value on the subsequent balance sheet date increases, the previous write-down amount shall be recovered and shall be reversed from the confirmed amount of asset impairment loss amount of the non-currentasset as per the measurement provisions on the Standard for Held-for-sale Non-current Assets after the assets are classified as held-for-sale category. The reverse amount shall be included into the current profits and losses, and the book value shall be added inproportion of the book value of each non-current asset in the disposal group applicable to the measurement provisions on the Standardfor Held-for-sale Non-current Assets, except for the goodwill; book value of the goodwill that has been offset and asset impairmentloss recognized before the non-current assets applying to the measurement provisions on Standard for Held-for-sale Non-current Assetsare classified as held-for-sale category shall not be reversed.Depreciation or amortization will not be withdrawn for held-for-sale non-current assets or non-current assets in the disposal group,and the interest of liabilities in held-for-sale disposal group and other expenses shall be recognized continuously.When the non-current assets or disposal group can't be classified as held-for-sale category continuously due to failing to satisfythe classification conditions of held-for-sale category or non-current assets are removed from the held-for-sale disposal group, themeasurement shall be carried out according to the following two items, subject to the lower one: ① book value before the assets areclassified as held-for-sale category, namely, the amount after the adjustment is carried out according to the depreciation, amortizationor impairment, etc., that shall be recognized in the condition that the assets are supposed not to be classified as held-for-sale category;
② Recoverable amount.
15. Long-term equity investment
The long-term equity investment mentioned in this part refers to the long-term equity investment of which Supor has controlright, common control right or significant impact on the invested units. Long-term equity investments that Supor does not have control,common control or significant impact on the invested unit are checked as financial assets financial assets measured at the fair valuewith their changes included into the current profits and losses. If such assets are non-transactional, Supor may specify these capitals asfinancial assets measured at the fair value with their changes included into other comprehensive incomes at the time of initialrecognition. For the accounting policy, please refer to Note 5. 9 "Financial instruments".
Common control refers to common control on a certain arrangement according to related provisions and related activities of thearrangement by Supor can be decided only after the consent of the participant sharing the control right. Significant impact refers toSupor's power on participating in the decision-making of financial and operating policies of the invested unit, but it can't control theformulation of these policies or control the formulation commonly with other party.Determination of investment costFor the long-term equity investment obtained from the enterprise merger under the same control, the initial investment cost ofthe long-term equity investment shall be taken as the share of the book value of the acquiree's shareholders' equities/owners' equitiesin consolidated financial statements of the final controlling party on the merger date. As to the difference between initial investmentcost of long-term equity investments and the book value of the cash paid, non-cash assets transferred and liabilities assumed, it'srequired to adjust the capital reserve correspondingly. In case the capital reserve is insufficient for the offset, it's required to adjust theretained earnings. In case that the issuance of equity securities is used as the merger consideration, the share of the book value of theacquiree's shareholders' equities/owners' equities in consolidated financial statements of the final controlling party is regarded as theinitial investment cost of long-term equity investment on the merger date; the capital reserves shall be adjusted in accordance withtaking the total book value of the issued share as share capital, and the difference between the initial investment cost of long-termequity investment and the total book value of shares issued; In case the capital reserve is insufficient for the offset, it's required to adjustthe retained earnings. The equity of the acquiree held step by step through several transactions, which finally forms enterprise mergerunder the same control, shall be handled separately according to whether it belongs to "package deal": if it belongs to the "packagedeal", the accounting treatment will be carried out by taking the transaction as the transaction with acquisition of control right. If itdoes not belong to "package deal", the share of the book value of the acquiree's shareholders' equities/owners' equities in consolidatedfinancial statements of the final controlling party on the merger date will be taken as the initial investment cost of long-term equityinvestment, and the capital reserve will be adjusted according to the difference between the initial investment cost of long-term equityinvestment and the sum of book value of long-term equity investment before merger and book value of consideration newly paid foracquiring the share; in case the capital reserve is insufficient for the offset, it's required to adjust the retained earnings. Othercomprehensive income of equity investment held before the merger date, which is accounted by equity method or recognized asfinancial assets measured at the fair value with their changes included into other comprehensive incomes, is not subject to theaccounting treatment temporarily.The long-term equity investment obtained from the enterprise merger not under the same control shall be used as the initialinvestment cost of long-term equity investment according to the merger cost on the purchase date. The merger cost includes the sumof assets paid by the acquirer, liabilities incurred or assumed, and fair value of issued equity securities. The equity of the acquiree heldstep by step through several transactions, which finally forms enterprise merger not under the same control, shall be handled separatelyaccording to whether it belongs to "package deal": if it belongs to the "package deal", the accounting treatment will be carried out bytaking the transaction as the transaction with acquisition of control right. If it does not a "package deal", it shall take the sum of thebook value of the original equity investment held by the original acquiree and the newly investment cost as the initial investment costof the long-term equity investments under the cost method. If the equity originally held is accounted for by the equity method, therelevant other comprehensive incomes will not be accounted for the time being.
The initial measurement of other equity investments except for the long-term equity investment formed by the enterprise mergershall be carried out according to the costs; in consideration of the different acquisition modes of long-term equity investment, suchcosts shall be determined respectively by the cash purchase price actually paid by Supor, the fair value of equity securities issued bySupor, value agreed in the investment contract or agreement, the fair value or original book value of assets surrendered in the non-monetary assets exchange transaction, the fair value of the long-term equity investment, etc. The expenses, taxes and other necessaryexpenditures directly related to the acquisition of the long-term equity investment shall also be included into the investment cost. If thesignificant impact or common control is implemented on the invested unit due to the additional investment, but it does not constitutethe control, the long-term equity investment cost is the sum of fair value of the originally held equity investment determined accordingto Accounting Standards for Business Enterprises No. 22 -- Recognition and Measurement of Financial Instruments and newly
investment cost.
(2) Methods for the subsequent measurement and the profit and loss confirmation
The long-term equity investment implementing the common control (except constituting the joint operator) or significant impactupon the invested unit adopts the equity method for accounting. Besides, the Company's financial statement adopts the cost method toaccount the long-term equity investment that can be controlled by the invested unit.(a) Long-term equity investments under the cost methodWhen the cost method is adopted for the accounting, the long-term equity investment shall be valued according to the initialinvestment cost and the cost of long-term equity investment shall be adjusted by additional or recovering of the investment. The currentinvestment incomes shall be recognized by the cash dividends or profits announced and issued by the invested unit, except for theactual price paid when the investment is obtained or the cash dividends or profits which have been declared but not issued in theconsideration.
(b) Long-term equity investments under the equity method
As to long-term equity investments checked by equity method, in case the initial investment cost is more than the shares of fairvalue of identifiable net assets of the invested unit during the investment period, initial investment cost of the long-term equityinvestments shall not be adjusted; in case the initial investment cost is less than the shares of fair value of identifiable net assets of theinvested unit during the investment period, the difference shall be included into the current profits and losses and the cost of long-termequity investments shall be adjusted simultaneously.
Under equity method, it's required to recognize the investment income and other comprehensive income respectively accordingto net profit or loss realized by the invested unit that shall be owned or shared and other comprehensive income, and book value of thelong-term equity investment shall be adjusted simultaneously. As to the part that shall be owned and calculated according to the profitsor cash dividends announced and distributed by the invested unit, it's required to reduce the book value of long-term equity investmentcorrespondingly. As to other changes in owners' equities of the invested unit except for net profits and losses, other comprehensiveincomes and profit distribution, book value of the long-term equity investment shall be adjusted and included into the capital reserve.When the shares of net profit or loss of the invested unit that shall be owned are recognized, it shall be based on fair value of identifiableassets of the invested unit when the investment is acquired and after the adjustment is made on net profit of the invested unit. In casethe accounting policy and accounting period employed by the invested unit are different from those employed by Supor, financialstatements of the invested unit shall be adjusted according to Supor's accounting policy and accounting period. Besides, investmentincome, other comprehensive income, etc., shall be recognized on this basis. For the transaction incurred between Supor and associatedenterprises and joint ventures, if the invested or sold assets do not constitute a business, the parts that do not achieve internal transactionprofits and losses or belongs to Supor calculated in proportion to entitlement will be offset, and the profits or losses on investment willbe confirmed on this basis. However, the unrealized internal transaction losses between Supor and the invested unit are not offset ifthey belong to the impairment loss of the transferred assets. If the assets invested by Supor to the joint venture or associated enterpriseconstitute business, and the investor thereupon obtains the long-term equity investment but fails to obtain the control right, the fairvalue of business launched is taken as the initial investment cost of newly long-term equity investment, and the difference between theinitial investment cost and book value of business launched will be included into current profits and losses in full. If the assets sold bySupor to the joint venture or associated enterprise constitute the business, the difference between the consideration acquired and thebook value of business shall be fully included into the current profits and losses. If Supor's assets purchased from the joint venture orassociated enterprise constitute business, accounting treatment shall be conducted in accordance with the provisions of the AccountingStandards for Business Enterprises No. 20 -- Business Combinations, fully recognize the gains or losses related to the transaction.
When the net loss of the invested unit that shall be shared is recognized, it shall be limited to writing off the book value of long-term equity investment and other long-term equity constituting the net investment in the invested unit to the zero. Besides, if Supor isobliged to bear the extra loss for the invested unit, it shall be necessary to determine estimated liabilities and record them to currentinvestment loss in compliance with obligations expected to be assumed. In case the net profit is realized by the invested unit later, afterSupor makes up the unrecognized loss amount shared by the income amount shared, it's required to recover the recognition of income
amount shared.
(c) Acquisition of minority shareholders' equitiesWhen compiling the consolidated financial statements, the Company shall adjust the capital reserve due to the difference betweenthe newly-increased long-term equity investment from the purchase of minority shareholders' equities and the net asset shares entitledaccording to the newly-increased shareholding proportion of the subsidiary continuously calculated from the purchase date (or themerger date); in case that the capital reserves are not sufficient to offset, the Company shall adjust the retained earnings.
(d) Disposal of the long-term equity investmentThe parent company partially disposes the long-term equity investment of the subsidiary when the control right is not lost inconsolidated financial statement. The difference between disposal price and subsidiaries' net assets entitled corresponding to thedisposal of long-term equity investment will be included into the shareholders' equities; supposing that the parent company loses thecontrol right for the subsidiary due to the partial disposal of the long-term equity investment for the subsidiary, it shall be dealt withaccording to the related accounting policy as specified in the Note 5. 6 "Preparation method for consolidated financial statements" (2).As for the disposal of the long-term equity investment under other circumstances, the difference between the book value of thedisposed equity and the actually-obtained price shall be included into current profits and losses.For the long-term equity investment accounted by the equity method, if the residual equities after disposal shall still be accountedby the equity method, upon the disposal, the part of the other comprehensive incomes that is originally included into the shareholders'equities shall have the accounting treatment on the same basis of the invested unit's directly disposing the relevant assets or liabilitiesaccording to the corresponding proportion. However, the owners' equities that are recognized based on the changes in other owners'equities shall be converted into current profits and losses in proportion, except for net profits and losses, other comprehensive incomesand profit distribution of the investee.For the long-term equity investments under the cost method, if the residual equities after disposal are still accounted with the costmethod, as for other comprehensive incomes confirmed due to adopting the equity method for accounting or adopting the standards ofrecognition and measurement of financial instruments for accounting before obtaining control of the invested unit, it shall be conductedwith accounting treatment on the same basis of the invested unit's directly disposal of the relevant assets or liabilities, and it shall becarried down to current profits and losses in proportion; changes in owners' equities other than net profits and losses, othercomprehensive incomes and profit distribution in the net assets of the invested unit recognized as a result of adopting the equity methodare carried forward to the current profits and losses in proportion.If Supor loses control of the invested unit due to disposal of partial equity investment, and the residual equities after disposal mayexert common control or significant impact on the invested unit while preparing individual financial statement, equity method will beadopted for accounting, and it will be accounted with equity method which is same as that when obtaining and adjusted; if the residualequities after disposal cannot implement the common control or exert significant impact on the invested unit, the relevant provisionsin respect of the standards of recognition and measurement of financial instruments shall be referenced for the accounting treatment,and the difference between the fair value and book value shall be included into current profits and losses on the date of losing control.Before Supor acquires the control on the invested unit, for other comprehensive incomes confirmed due to adopting the equity methodfor accounting or adopting the standards of recognition and measurement of financial instruments for accounting, when the Group losesthe control on the invested unit, it shall conduct the accounting treatment on the same basis of the invested unit's directly disposing therelevant assets or liabilities; the changes of the other owners' equities in net assets of the invested unit other than the net profits andlosses, other comprehensive incomes and profit distribution accounted and confirmed by the equity method shall be converted intocurrent profits and losses when the Group loses control on invested unit. Among which, if the residual equities after disposal arecalculated by the equity method, other comprehensive incomes and other owners' equities shall be carried forward in proportion; if theresidual equities after disposal are subject to the standards of recognition and measurement of financial instruments for the accountingtreatment, other comprehensive incomes and other owners' equities shall be carried down.If Supor loses the common control or significant impact on the invested unit due to disposal of partial equity investment, theresidual equities after disposal shall be accounted according to standards of recognition and measurement of financial instruments. The
difference between the fair value and book value shall be included into current profits and losses on the date of losing common controlor significant impact. As for other comprehensive incomes as recognized when the original equity investment is accounted with theequity method, it shall be subject to the accounting treatment on the same basis of the assets or liabilities which are directly disposedby the invested unit when the equity method is abandoned. The owners' equities which are recognized by the invested unit due to thechanges in other owners' equities, except for net profits and losses, other comprehensive incomes and profit distribution of the investee,will be converted into current investment incomes when the equity method is abandoned.Supor will take the multiple transactions to dispose the subsidiaries' equity investment step by step until lose its control right.When the above-mentioned transactions belong to the package deal, the transactions will be subject to the accounting treatment as anequity investment of subsidiaries and transaction which has lost the control right. The difference between disposal price and thecorresponding book value of long-term equity investment will be recognized as the other comprehensive incomes before losing thecontrol right, which will be converted into current profits and losses when the control right is lost.
16. Fixed assets
(1) Recognition conditions
Fixed assets refer to tangible assets held for producing commodities, providing labor service, leasing or operation management withservice life of more than 1 fiscal year. The fixed asset can be confirmed only when the economic interest related to a fixed asset islikely to flow into Supor, and the cost of such fixed asset can be reliably measured. The initial measurement of fixed assets shall becarried out according to the cost and considering the expected influence of the discard expenses.
(2) Depreciation method
From the following month when fixed assets reach the estimated applicable state, the depreciation is withdrawn within its servicelife with the straight-line method. Service life, expected net residual value, annual depreciation rate of all kinds of fixed assets are asfollows:
| Categories | Depreciation method | Useful life (years) | Estimated residual value proportion | Annual depreciation rate |
| Buildings and structures | Straight-line method | 20-30 years | 3%-10% | 3.00%-4.85% |
| General equipment | Straight-line method | 3-5 years | 3%-10% | 18.00%-32.33% |
| Special equipment | Straight-line method | 10 years | 3%-10% | 9.00%-9.70% |
| Transport facilities | Straight-line method | 4-10 years | 3%-10% | 9.00%-24.25% |
The expected net residual value refers to the expected amount that Supor may obtain from the current disposal of fixed assets afterdeducting the expected disposal expenses at the expiration of its expected service life.
(3) Impairment test method and counting and withdrawing method of the impairment provision of fixed assets
Refer to Note 5. 21 "Impairment of long-term assets" about the impairment test method and the withdrawing method of impairmentprovision of fixed assets.
(4) Other remarks
The subsequent expenditures related to fixed assets shall be included into fixed assets cost, and the derecognition of the book valueof the substitution part shall be carried out if economic benefits related to such fixed assets may flow in and its cost can be reliablymeasured. Other subsequent expenditures, excepting for this, shall be included into the current profits and losses at the time ofoccurrence.
As for each component constituting fixed assets, in case that they have different service life or provide economic interests for Suporby different ways and apply to different rates of depreciation and depreciation methods, Supor confirms each component as a singlefixed asset.
When the fixed assets are under disposal state or it is estimated that no economic benefits can be produced through usage or disposal,
such fixed asset is confirmed to be derecognized. The difference between book value and relevant taxes deducted from the disposalincome obtained from the sales, transfer, discard or damage of the fixed assets shall be included into the current profits and losses.Supor shall review the service life, expected net residual value and depreciation method of the fixed assets at least by the end of theyear. In case of any change, it shall be deemed as changes in accounting estimate.
17. Construction in progress
The cost of construction in progress shall be confirmed as per actual engineering expenditures, including various projectexpenditures under construction, capitalized borrowing expense for making the project reach the expected serviceable condition, andother relevant costs. The construction in progress shall be transferred to the fixed assets when it reaches the expected serviceablecondition.Refer to Note 5. 21 "Impairment of long-term assets" about the impairment test method and the withdrawing method of impairmentprovision of construction in progress.
18. Borrowing expenses
Borrowing expenses include interest on borrowing, amortization of discounts or premiums, auxiliary costs and exchangedifferences arising from foreign currency borrowings, etc. For the borrowing expense generated from the acquisition and constructionor production that can be directly attributable to the assets that meet capitalization conditions, the capitalization shall be started whenthe asset expenditure or the borrowing expense has incurred, or the acquisition and construction or production activities necessary formaking the assets available for expected serviceable or marketable state have been started; capitalization shall be stopped when theassets under acquisition and construction or production that meet capitalization conditions reach the expected serviceable condition ormarketable state. Other borrowing expenses are recognized as expenses in the current period.
The amount after the actual interest expense generated from the specific borrowing deducts the interest revenue from the unusedloan funds deposited in the bank or investment income obtained from the temporary investment in the current period can be capitalized;for the general borrowing, the capitalized amount will be determined after the weighted average of excessive part of accumulative assetexpenditures compared to the asset expenditure of special borrowing is multiplied by the capitalization rate of the general borrowingoccupied. The capitalization rate is determined based on the weighted average interest rate of general borrowing.
In the capitalization period, all exchange differences of special foreign currency borrowings shall be capitalized; exchangedifference of general foreign currency borrowing shall be included into the current profits and losses.
Assets meeting capitalization conditions refer to the fixed asset, investment properties, inventory, etc., which can reach theexpected serviceable state or marketable state after quite a long time of acquisition and construction or production.
If assets meeting capitalization conditions are interrupted abnormally in the process of acquisition and construction or production,and the interruption lasts for more than 3 months, the capitalization of borrowing expense shall be suspended till the asset acquisitionand construction or production restarts.
19. Intangible assets
(1) Intangible assets
Intangible assets refer to the identifiable non-monetary assets that have are owned or controlled by Supor and have no physicalform.
The initial measurement of intangible assets shall be conducted according to its costs. Expenditures related to intangible assetsshall be included into the cost of intangible assets if the relevant economic benefits may flow in Supor and its cost can be reliablymeasured. Other expenditures, excepting for this, shall be included into the current profits and losses at the time of occurrence.
Land use right acquired is usually calculated as an intangible asset. As for buildings such as self-developed and constructedworkshops, the related land use right expenditure and construction cost of the buildings shall be calculated as intangible assets andfixed assets respectively. As for purchased houses and buildings, the related prices are distributed between land use rights and buildings.If it is difficult to allocate reasonably, all shall be treated as fixed assets.As for intangible assets with a limited service life, the accumulative amount after deducting the expected net residual value andthe accrued impairment provisions with original value since the serviceable date is amortized with the straight-line method within theexpected service life. Intangible assets with undetermined service life will not be amortized.Among them, the service life and amortization method of intangible assets of intellectual property right are as follows:
| Item | Amortization period (years) | Amortization method |
| Land use right | 43-50 | Straight-line method |
| Software | 2-10 | Straight-line method |
Trademark right
| Trademark right | 10 | Straight-line method |
At the end of the year, the service life of intangible assets with limited service life and the amortization method for them will berechecked. Changes of them will be regarded as changes of accounting estimate. In addition, the service life of intangible assets withundetermined service life will be rechecked. If there is evidence manifesting that an intangible asset can bring economic benefits forthe enterprise within a foreseeable period, then its service life will be estimated and it will be amortized according to the amortizationpolicy for intangible assets with limited service life.
(2) R&D expenditure
Expenditures on the internal R&D items of Supor are divided into research expenditure and development expenditure.
Research expenditure is included into the current profits and losses when it occurs
Development expenditure that can meet the following conditions will be recognized as intangible assets, while those cannot meetwill be included into current profits and losses:
- Complete the intangible asset so as to make the use or sale of it technically feasible;
- Have the intention to complete the intangible asset and use or sell it;
- The way that an intangible asset generates economic benefits is to certify that the products produced with the intangible assethas market or the intangible asset itself has market, or to certify its usability when it will be used internally;
- There are enough technology, financial resources and other resources to support finishing the development of an intangible asset,and it is capable of using or selling this intangible asset;
- Expenditure within the development stage of this intangible asset can be measured reliably.
If it is unable to distinguish the research expenditure from development expenditure, both R&D expenditures will be included intothe current profits and losses.
(3) Impairment test method and counting and withdrawing method of the impairment provision of intangible assets
Refer to Note 5. 21 "Impairment of long-term assets" about the impairment test method and the withdrawing method of impairmentprovision of intangible assets.
20. Long-term unamortized expenses
Long-term unamortized expenses are expenses that have occurred but shall be borne during the reporting period and subsequentperiods with a sharing period of more than one year. Long-term unamortized expenses of Supor mainly include improvementexpenditure of fixed assets leased for operation. Long-term unamortized expenses are amortized on a straight-line basis over theexpected benefit period.
21. Impairment of long-term assets
As for fixed assets, construction in progress, right-of-use assets, intangible assets with a limited service life, investment propertiesmeasured by cost measurement, long-term unamortized expenses and non-current and non-financial assets such as the long-term equityinvestment and goodwill of subsidiaries, joint ventures and associated enterprises, Supor shall determine whether there is any sign ofimpairment on the balance sheet date. If there are signs of impairment, the recoverable amount shall be estimated and impairment testshall be carried out. Goodwill, intangible assets with undetermined service life and intangible assets that have not reached theserviceable state, whether there is any sign of impairment, shall be subject to impairment test every year.If the impairment test result shows that the recoverable amount of assets is lower than the book value thereof, impairment provisionshall be withdrawn according to the difference and it will be included into impairment losses. The recoverable amount shall bedetermined as the net amount obtained by the fair value of assets minus disposal expense, or as the present value of the estimated futurecash flow of assets, whichever is higher. The fair value of the asset is determined according to the price in the sales agreement in thefair transaction; if there is no sales agreement but there is an active market of assets, the fair value is determined according to buyer'sprice of the asset; if there is no sales agreement and an active market of assets does not exist, the fair value of assets shall be estimatedbased on the best information obtained. The disposal expenses include the legal fees related to the asset disposal, relevant taxes, carriageexpenses as well as direct expenses for achieving the marketable state status. The present value of the estimated future cash flow ofassets shall be determined by the discounted amount by an appropriate discount rate, on the basis of the estimated future cash flowgenerated during the continuous usage and final disposal of assets. The asset impairment provision shall be calculated and recognizedon the basis of a single asset. If it is hard to assess the recoverable amount of a single asset, the recoverable amount of the asset groupshall be determined according to the asset group including the assets. Asset group refers to the minimum asset portfolio that is capableof independently generating cash inflow.For the goodwill separately presented in the financial statements, during the impairment test, the book value of goodwill shall beapportioned to the asset group or asset group portfolio expected to be benefited from the synergistic effect of enterprise merger. If thetest results show that the recoverable amount of the asset group or asset group portfolio containing the apportioned goodwill is lowerthan its book value, the corresponding impairment loss shall be recognized. The amount of impairment loss firstly offsets the bookvalue of goodwill apportioned to the asset group or asset group portfolio, and then offsets the book value of other assets in proportionof the book value other than goodwill in the asset group or asset group portfolio.Once the above-mentioned asset impairment losses are recognized, it will not be reversed for the part whose value has beenrestored in subsequent periods.
22. Contract liabilities
Contractual liabilities refer to the obligation of Supor to transfer commodities to customers on account of the considerationreceived or receivable by the Group. If a customer has paid the contract consideration or Supor has obtained the unconditional right toreceive the commodities before the transfer of the commodities from Supor to the customer, Supor will list the received amount oraccount receivable as a contract liability at the earlier time of the customer's actual payment and due payment. Contract assets andcontract liabilities under the same contract are reported in net amount, and contract assets and contract liabilities under differentcontracts are not offset.
23. Employee remuneration
Employee remuneration of Supor mainly includes short-term remuneration, post-employment benefit, termination benefit andother long-term employee welfares. Including:
Short-term employee remuneration mainly includes salary, bonus, allowance and subsidy, employee benefit expense, medicalinsurance premium, birth insurance premium, work-related injury insurance premium, housing accumulation fund, labor union
expenditure and employees' educational fund, non-monetary benefit, etc. During the accounting period in which Supor's employeesprovide services for Supor, actual short-term employee remuneration incurred shall be recognized as the liabilities and included intothe current profits and losses or relevant asset costs. And the non-monetary benefits shall be measured at fair value.Post-employment benefit mainly includes basic endowment insurance, unemployment insurance, and annuity. The plan of post-employment benefit includes the defined contribution plan. In case that the defined contribution plan is adopted, corresponding amountwhich shall be deposited will be included into the relevant asset costs or current profits and losses at the time of occurrence.Labor relation with employees shall be cancelled before the employee's labor contract expires, or suggestion on givingcompensation shall be proposed for the purpose of encouraging employees to voluntarily accept downsizing. When Supor cannotunilaterally withdraw termination benefits provided for cancellation of labor relation plan or downsizing suggestion and on the datewhen Supor confirms the cost related to reconsolidation involving payment of termination benefits, whichever is the earlier, theemployee remuneration liabilities caused by termination benefits shall be recognized and included into the current profits and losses.However, if it is expected that the termination benefits cannot be fully paid within twelve months after the annual reporting period isover, it shall be handled according to other long-term employee remuneration.The same principle for termination benefits described above shall be adopted for the plan of employee internal retirement.Personnel salary and social insurance premium to be paid by Supor for the early retired employee from the date of stopping providingservices to the date of normal retirement are included into current profits and losses (termination benefit) if the recognition conditionsof estimated liabilities are met.
24. Estimated liabilities
When the obligation related to contingencies satisfies the following conditions at the same time, they will be recognized asestimated liabilities: ① The obligation is the present obligation undertaken by Supor; ② Performance of this obligation may makeeconomic benefits flow out of the enterprise; ③ Amount of this obligation can be reliably measured.On the balance sheet date, considering the risks, uncertainties and time value of money related to contingencies, the estimatedliabilities are measured in accordance with the optimal estimate of the expenditure required to perform the relevant current obligations.There is a continuous range of required expenditures, and the likelihood of the occurrence of outcomes within the range is thesame. The optimal estimate is determined by the intermediate value within the range. In other cases, the optimal estimate shall behandled in accordance with the following situations respectively:
Where the contingency involves a single item, it shall be determined based on the most likely amount.
Where the contingency involves multiple items, it shall be determined based on various possible outcomes and associatedprobabilities.
If all or part of the expenditure necessary for paying off estimated liabilities is compensated by the third party, the compensationamount shall be confirmed separately as asset when confirming it may be recovered. Confirmed compensation amount shall not exceedthe book value of anticipation liabilities.
(1) Loss contract
The loss contract refers to a contract whose performance of the contractual obligations will inevitably incur costs in excess of theexpected economic benefits. When an executory contract becomes a loss contract, for which the liability can conform to the aforesaidestimated liabilities confirmation conditions, the part of the estimated contract loss exceeding the confirmed impairment loss (if any)of the underlying asset of the contract shall be recognized as the estimated liability.
(2) Restructuring obligations
The estimated liabilities shall be determined according to the direct expenditures related to the restructuring which has detailed,formal and publicly stated restructuring plan and which are in line with the confirmation conditions of the aforesaid estimated liabilities.The restructuring obligation related to partially-sold business will be recognized to be the associated obligation only when Suporpromises to sell partial businesses (namely, signs the binding-force sales agreement).
25. Share-based payment
(1) Accounting treatment of share-based payment
A share-based payment is a transaction that grants the equity instruments or assumes a liability determined on the basis of the equityinstruments in order to obtain services from employees or other parties. Share-based payments are divided into equity-settled share-based payments and cash-settled share-based payments.(a) Equity-settled share-based paymentEquity-settled share-based payments in exchange for services provided by employees are measured at the fair value with the equityinstruments granted to the employees at the grant date. The amount of the fair value is included into the relevant cost or expense basedon the optimal estimate of the number of vesting equity instruments in the waiting period, based on the optimal estimate of the numberof vesting equity instruments in case of completing the service within the waiting period or meeting the required performance conditions;when the vesting right is granted immediately after the grant, the relevant cost or expense is included into the grant date, and the capitalreserves shall be increased accordingly.On each balance sheet date during the waiting period, Supor makes the optimal estimate based on the latest information such as thechange in the number of employees with vesting rights, and corrects the number of equity instruments that are expected to be vested.The impact of the above estimates is included into the current relevant cost or expense, and the capital reserves shall be adjustedaccordingly.In the case of equity-settled share-based payments in exchange for other parties' services, if the fair value of other parties' services canbe reliably measured, the fair value of other parties' services is measured at the fair value on the date of acquisition; if the fair value ofother parties' services cannot be reliably measured, but the fair value of equity instruments can be measured reliably, it shall bemeasured at the fair value of the equity instrument on the acquisition date, and is included into the relevant cost or expense, andincreases the shareholders' equities accordingly.(b) Cash-settled share-based paymentThe cash-settled share-based payment is measured at the fair value of the liabilities determined by Supor based on shares or otherequity instruments. If the vesting right is granted immediately after the grant, the relevant cost or expense will be included on the grantdate, and the liabilities increased accordingly; if the service within the waiting period must be completed or the required performanceconditions are met, the fair value of the liabilities assumed by Supor is based on the optimal estimate of the vesting rights on eachbalance sheet date of the waiting period. The services obtained in the current period are included into the cost or expense, and theliabilities are increased accordingly.The fair value of the liability is re-measured at the balance sheet date and the balance sheet date before the settlement of relevantliabilities, and the change is included into the current profits and losses.
(2) Accounting treatment related to the modification and termination of share-based payment planWhen Supor modifies the share-based payment plan, if the modification increases the fair value of the equity instruments granted, theincrease in the fair value of the equity instruments is recognized accordingly. The increase of the fair value of equity instruments refersto the difference between the fair value of the equity instruments before and after the modification on the modification day. If themodification reduces the total fair value of the share-based payment or adopts other methods that are not conducive to the employee,the service obtained will continue to be accounted for, as if the change has never occurred, unless Supor cancels some or all of theequity instruments granted.During the waiting period, if the granted equity instrument is cancelled, Supor will cancel the granted equity instrument as anaccelerated exercise, and the amount to be recognized in the remaining waiting period will be immediately included into the currentprofits and losses, and the capital reserves shall be recognized at the same time. If the employee or other party can choose to meet thenon-vesting conditions but fails to meet in the waiting period, Supor will treat it as a cancellation of the equity instrument.
(3) Accounting treatments of the share-based payment transactions involving Supor and the shareholders or actual controllers of theCompany
For share-based payment transaction involving Supor or the Company's shareholders or actual controller, if either settlement enterpriseor service enterprise is inside Supor or outside Supor, the accounting treatment shall be conducted in the consolidated financialstatements according to the following regulations:
- Where the settlement enterprise makes calculation by its own equity instruments, the share-based payment transaction shall be treatedas the equity-settled share-based payment; in addition, it is handled as a cash-settled share-based payment.- If the settlement enterprise is an investor of a service enterprise, it shall be recognized as the long-term equity investment of theservice enterprise according to the fair value of the equity instrument at the grant date or the fair value of the liability to be assumed,and the capital reserves (other capital reserve) or liabilities shall be recognized.- If the service enterprise has no settlement obligation or the equity instruments granted to employees of the enterprise are its ownequity instruments, such share-based payment transaction shall be taken as the equity-settled share-based payment treatment; If theservice enterprise has settlement obligation and the equity instruments granted to employees of the enterprise are not its own equityinstruments, such share-based payment transaction shall be taken as the cash-settled share-based payment treatment.The share-based payment transactions between the enterprises within Supor, if the acceptance services enterprise and the settlemententerprise are not the same enterprise, and the confirmation and measurement of the share-based payment transaction in the individualfinancial statements of the acceptance service enterprise and the settlement enterprise shall be compared with the above principles.
26. Revenues
Accounting policies adopted for revenue recognition and measurementRevenue is the total inflow of economic benefits that Supor has formed in its daily activities that will result in an increase inshareholders' equities and has nothing to do with the capital invested by shareholders. Where the contract between Supor and itscustomers can meet the following conditions at the same time, the revenue shall be confirmed when the customer owns the relevantcontrol right of the commodity (including labor service, the same below): the parties to the contract have approved the contract andundertake to perform their respective obligations; the contract specifies the rights and obligations of the parties to the contract in relationto the commodities transferred or the services rendered; the contract has express terms of payment in relation to the commoditiestransferred; the contract is for commercial purposes, which means the performance of the contract will change the risk, timing oramount of Supor's future cash flows; and the consideration to which Supor is entitled as a result of the transfer of commodities to thecustomer is likely to be recovered. Obtaining the control right of related commodities means being able to dominate the use of suchcommodities and obtain almost all economic benefits from them.At the commencement date of the contract, Supor identifies each individual performance obligation under the contract and apportionsthe transaction price to each individual performance obligation in proportion to the selling prices of the commodities to which eachindividual performance obligation relates. Variable consideration, significant financing parts in the contract, non-cash considerationand consideration payable to the customer are taken into account in determining the transaction price.For contracts with quality assurance terms, Supor analyzes the nature of the quality assurance provided. If the quality assuranceprovides a separate service in addition to assuring customers that the goods sold meet the established standards, Supor will treat it asan individual performance obligation.The transaction price refers to the amount of consideration that Supor expects to be entitled to receive due to the transfer of goods orservices to the customers, excluding payments received on behalf of third parties. The transaction price recognized by Supor does notexceed the amount at which the accumulated recognized revenue would be extremely unlikely to be significantly reversed when therelevant uncertainty is eliminated.For an individual performance obligation under the contract, Supor recognizes as revenue the transaction price apportioned to theindividual performance obligation during the relevant performance period based on the progress of the performance in the case of anyof the following: the customer obtains and consumes the economic benefits from Supor's performance of the contract at the same timeas Supor's performance; the customer is able to control the commodities under construction during Supor's performance of the contract;
or the commodities produced during Supor's performance of the contract have irreplaceable uses, and Supor is entitled to receive relatedamount for the cumulative performed part to date over the entire contract term. The progress of performance is determined by the inputmethod or the output method as applicable to the properties of the commodities transferred. If the progress of performance cannot bereasonably determined, and the costs incurred by Supor are expected to be compensated, income is recognized based on the amount ofcosts incurred until the progress of performance can be reasonably determined.If none of the above cases occurs, Supor will recognize as revenue the transaction price apportioned to the individual performanceobligation at the time point when the customer acquires control right of relevant commodities. In determining whether the customerhas acquired control right of the commodities, Supor takes into account the following indications: the Enterprise has a current right toreceive payment for the commodities, which means the customer has a current obligation to pay for the commodities; the Enterprisehas transferred the legal ownership of the commodities to the customer, which means the customer has the legal ownership of thecommodities; the Enterprise has transferred the commodities to the customer, which means the customer holds the commodities in thephysical sense; the Enterprise has transferred the main risks and rewards pertaining to the ownership of the commodities to the customer,that is to say, the customer has obtained the main risks and rewards pertaining to the ownership of the Goods; the customer has acceptedthe commodities; and other indications that the customer has acquired control right of the commodities.For sales with return policies, when the customers obtain the control right of relevant goods, Supor recognizes the revenues accordingto the amount of consideration expected to be entitled to receive due to the transfer of goods to the customers (i.e., excluding the amountexpected to be returned due to sales return), and recognizes the liabilities according to the amount expected to be returned due to salesreturn. In the meanwhile, according to the expected book value of the returned goods at the time of transfer, the balance after deductingthe estimated cost of recovering the goods (including the value impairment of the returned goods) is recognized as an asset. Accordingto the book value at the time of goods transfer, the net carry-over cost of the aforementioned asset cost is deducted. On each balancesheet date, Supor will re-estimate the future sales return. In case of any change, it will conduct the accounting treatment as the changeof accounting estimate.Supor's selling of commodities such as cooking utensils and small domestic appliances is a type of performance obligation at a certaintime point, of which the revenue is recognized when the control over commodities has been transferred to the customers. According tothe agreement in the sales contract, Supor mainly recognizes the control over commodities having been transferred to the customer andrelevant commodity revenues when such commodities have left Supor's warehouses or its specified warehouses, delivered to thecustomers with the acceptance receipt issued, or such commodities have been delivered on board to the sea transport carrier with thecustoms declaration for export and bill of lading obtained.
27. Contract cost
The incremental cost incurred by Supor to obtain the contract and expected to be recovered is recognized as an asset as the contractacquisition cost. However, if the amortization period of the asset does not exceed one year, it shall be included in the current profitsand losses when it occurs.If the cost incurred for the performance of the contract does not fall within the scope of the Accounting Standards for BusinessEnterprises No. 14 -- Revenue (Revised in 2017) and meets the following conditions at the same time, it shall be recognized as an assetas the contract performance cost: ① The cost is directly related to a current or anticipated contract, including direct labor, directmaterials, manufacturing expenses (or similar expenses), costs clearly borne by the customer, and other costs incurred solely due to thecontract; ② This cost increases the resources Supor will use to fulfill its performance obligations in the future; ③ This cost is expectedto be recovered.
Assets recognized for contract acquisition cost and those recognized for contract performance cost (hereinafter referred to as"assets related to the contract cost") shall be amortized on the same basis as the revenue recognition of commodities or services relatedto such assets and included into the current profits and losses.
Where the book value of assets related to contract costs is higher than the difference between the following two items, Supor shallwithdraw the impairment provision of the excess part and recognize it as the asset impairment loss:
? Residual consideration expected to be obtained by Supor arising from the transfer of commodities or services related to theassets;
? Cost estimated to be occurred for the transfer of the relevant commodities or services.
28. Government subsidies
Government subsidies refer to monetary assets and non-monetary assets obtained by Supor from the government, excluding thecapital invested by the government as the investor with enjoying corresponding owners' equities. Government subsids are divided intogovernment subsidies concerning assets and government subsidies concerning benefits. Supor defines the government subsidiesobtained for the acquisition and construction or the formation of long-term assets in other ways as government subsidies concerningassets; other government subsidies shall be defined as the government subsidies concerning benefits. If the government document doesnot clear the subsidy object, the subsidies will be divided based on the following modes into government subsidies concerning benefitsand government subsidies concerning assets: ① If the particular item of the subsidies is clear in the government document, it shallmake a division according to the relative proportion of expense amount of the formed assets in the budget of the particular item andthe expense amount included into the cost, review the division ratio at each balance sheet date and make changes if necessary; ② Inthe government document, for general terms only for the purpose without specifying the particular item, it will be used as thegovernment subsidies concerning benefits. If government subsidies are monetary assets, they shall be measured according to the amountreceived or receivable. If not, they shall be measured according to their fair value; if their fair value cannot be reliably obtained, theyshall be measured according to their nominal amount. The government subsidies measured at the nominal amount shall be directlyincluded into the current profits and losses.
When Supor actually receives the government subsidies, it shall be recognized and measured as the amount received. However,for the end of the year, there are conclusive evidences that it can meet the relevant conditions stipulated by the financial support policy,and it is expected that the financial support funds can be received, it shall be measured according to the amount receivable. Thegovernment subsidies measured as the amount receivable shall comply with the following conditions: ① The amount of the subsidyreceivable has been recognized by the competent government department, or may be reasonably calculated according to the relevantprovisions of the formally published financial fund management method, and the estimated amount is free of significant uncertainty;
② The bases are the initiatively published financial support project by the local financial department and its financial fund managementmethod in accordance with the regulations of the Decree of Government Information Openness, and this management method shall befavorable to the public (any enterprise qualified can apply), not just to the specified companies; ③ The relevant subsidy officialdocuments have clearly promised the appropriation period, and the appropriation of this fund shall be safeguarded by the relevantfinancial budget, so it can be reasonably guaranteed that it can be received within the specified period; ④ Other relevant conditionsthat shall be satisfied (if any) based on the specific circumstances of Supor and the grant.
If the government subsidies concerning assets are recognized as deferred incomes and are included into the current profits andlosses by installments in a reasonable and systematic way within the service life of underlying assets. Government subsidies concerningbenefits used to compensate future relevant costs or losses will be recognized as deferred incomes, and included into the current profitsand losses; those used to compensate relevant costs or losses that have occurred will be included into the current profits and lossesdirectly.
At the same time, it includes the government subsidies related to assets and incomes, and separates different parts for accountingtreatment; for those hard to be differentiated, it shall be taken as government subsidies concerning benefits as a whole.
The government subsidies concerning daily activities of Supor shall be included into other incomes, or used to offset the relevantcosts according to the economic business nature; government subsidies concerning not daily activities will be included into non-operating income.
If the government subsidies confirmed needs to be returned and there is the deferred incomes balance concerned, the book balanceof relevant deferred incomes shall be offset against, but the excessive part shall be included into current profits and losses; in othercircumstances, they shall be included into current profits and losses directly.
29. Deferred income tax assets/deferred income tax liabilities
(1) Current income tax
On the balance sheet date, the current income tax liabilities (or assets) incurred in the current period or prior periods shall bemeasured in accordance with the expected payable (or refundable) amount of income tax which is calculated according to the tax law.The taxable income on which the current income tax expenses are calculated shall be calculated after the corresponding adjustment ofthe pre-tax accounting profit in the current reporting period in accordance with the relevant tax law.
(2) Deferred income tax assets and deferred income tax liabilities
The difference between the book value of some assets and liabilities and their tax bases, and the temporary difference caused bythe difference between the book value of the items that are not recognized as assets and liabilities but whose tax bases can be determinedaccording to the tax law, shall be used to recognize deferred income tax assets and deferred income tax liabilities with the balance sheetliability method.
For taxable temporary differences related to the initial confirmation of goodwill and related to the initial recognition of assets orliabilities arising from transactions that are neither enterprise merger nor affecting the accounting profit and taxable income (ordeductible loss) when it occurs, the relevant deferred income tax liabilities shall not be recognized. In addition, for taxable temporarydifferences related to the investments of subsidiaries, joint ventures and associated enterprises, if Supor can control the time of reversalof the temporary differences, and the temporary differences are likely not to be reversed in the foreseeable future, the relevant deferredincome tax liabilities shall not be recognized. Except for the above exceptions, Supor shall recognize all other deferred income taxliabilities incurred in the taxable temporary differences.
For deductible temporary differences related to the initial recognition of assets or liabilities arising from transactions that areneither enterprise merger nor affecting the accounting profit and taxable income (or deductible loss) when it occurs, the relevantdeferred income tax assets shall not be recognized. In addition, for the deductible temporary differences related to the investment ofsubsidiaries, joint ventures and associated enterprises, if the temporary differences are not likely to be reversed in the foreseeable future,or it is not likely to obtain the taxable income used to offset the deductible temporary differences in the future, the relevant deferredincome tax assets shall not be recognized. Except for the above exceptions, Supor shall recognize the deferred income tax assets arisingfrom other deductible temporary differences to the extent that taxable income is likely to be obtained for deducting the deductibletemporary differences.
For deductible losses and tax deductions that can be carried forward for subsequent years, the corresponding deferred income taxassets shall be recognized to the extent of the future taxable income likely to be obtained for deducting the deductible losses and taxdeduction.
Deferred income tax assets and deferred income tax liabilities shall be calculated on the balance sheet date based on the applicabletax rate during the period of expected recovery of relevant assets or clearing off relevant liabilities according to tax laws.
On the balance sheet date, it is required to recheck the book value of the deferred income tax assets. If sufficient taxable incomeis not likely to be obtained for deducting the interest of deferred income tax assets in the future, the book value of deferred income taxassets shall be written down. When it is possible to obtain sufficient taxable income, the reduced amount shall be reversed.
(3) Income tax expense
The income tax expenses comprise the current income tax and deferred income tax.
Moreover, the other current income tax and deferred income tax expenses or earnings shall be included into the current profitsand losses, except for book value of goodwill which is adjusted on the basis of the deferred income tax caused by the enterprise merger,and that the current income tax and the deferred income taxes related to other comprehensive incomes or transaction or affairs of directrecording in the shareholders' equities are included into other comprehensive incomes or shareholders' equities.
(4) Income tax offsets
In the case of having legal rights of net settlement and intending to settle or obtain assets and pay off debts with net amount,Supor's current income tax assets and current income tax liabilities shall be presented with the net amount after offsetting.
In the case of having legal rights to settle current income assets and current income liabilities with net amount, deferred incometax assets and deferred income tax liabilities being related to income taxes collected by one tax collection and administration departmentagainst the same taxpayer or related to different taxpayers, but involved tax payers intending to settle the current income tax assets andliabilities with net amount or obtaining assets while paying off debts in any important period of reversing deferred income tax assetsand liabilities, Supor's deferred tax asset and deferred income tax liabilities shall be presented with the net amount after offsetting.
30. Leases
Lease refers to the lessor transferring the use right of assets to the lessee to get the corresponding consideration within a certainperiod.
Supor evaluates whether the contract is used for lease or includes the lease on the contract commencement date. If one party ofthe contract assigns the one or more use rights of the identified assets under the control in a certain period for consideration, the contractis used for lease or includes the lease.
To determine whether the contract transfers the right to control the use of the identified assets within a certain period, thefollowing assessments are conducted by Supor:
Whether the contract involve the use of identified assets. Identified assets may be explicitly specified by the contract or implicitlyspecified when the asset is available to customers, and the asset is physically distinguishable, or a certain part of the capacity or otherparts of the asset is physically indistinguishable but substantially represents the entire capacity of the asset, so that the customer canobtain almost all the economic benefits arising from the use of the asset. In the event that the supplier of the asset has a substantial rightto replace the asset during the entire period of use, the asset is not an identified asset;
Whether the lessee has the right to obtain almost all the economic benefits arising from the use of the identified assets during theperiod of use;
Whether the lessee has the right to direct the use of the identified asset during the period of use.
If the contract contains multiple separate leases at the same time, the lessee and lessor will split the contract and account for eachseparate lease separately to have accounting treatment. If the contract includes lease and non-lease parts at the same time, the lesseeand lessor will split lease and non-lease parts.
(1) Supor as the lessee
On the commencement date of the lease term, Supor recognizes the right-of-use assets and lease obligations. The right-of-useassets are initially measured at cost, including the initial measurement amount of the lease obligation, the amount of lease paymentspaid on or before the start of the lease term (deducting the amount of lease incentives already enjoyed), the initial direct expenseincurred, and the estimated cost incurred for dismantling and removing the leased asset, restoring the site where the leased asset islocated, or restoring the leased asset to the state agreed upon in the lease terms.
Supor uses the straight-line method to depreciate the right-of-use assets. If the ownership of the leased assets can be reasonablyconfirmed to be obtained upon expiry of the lease term, the depreciation of the leased assets shall be withdrawn during the remainingservice life by Supor. Otherwise, the leased assets shall be depreciated during the lease term or the remaining service life of the leasedassets, whichever is shorter. The impairment provision of right-of-use assets is made pursuant to the accounting policy set forth in Note
5. 21 "Impairment of long-term assets".
The lease obligations are initially measured at the present value of the lease payment that has not been paid at the beginning ofthe lease term, and the discount rate is the implicit rate of the lease. If the implicit rate of the lease cannot be determined, Supor'sincremental borrowing rate is used as the discount rate.Supor calculates the interest expense of the lease obligation in each period of the lease terms at a fixed cyclical interest rate andincludes it into current profits and losses or relevant asset costs. The variable lease payment not included into the measurement of leaseobligations will be included into current profits and losses or relevant asset costs when it actually occurs.In case of the following situations after the commencement date of the lease term, Supor will measure the lease obligation anewas per the present value of lease payment after the change:
The amount payable anticipated is changed as per the guaranteed residual value changes;
The index or ratio used for confirming the lease payment changes;
Supor has a change in the assessment results of the option to purchase, renewal option or option of determination of tenancychanges or the actual exercising of the renewal option of determination of the lease is inconsistent with the original assessment result.
When the lease obligation is measured anew, Supor will adjust the book value of right-of-use assets accordingly. If the bookvalue of right-of-use assets has been reduced to zero, but the lease obligation still needs to be further reduced, Supor will include theremaining amount into the current profits and losses.
Supor chooses not to confirm the right-of-use asset and lease obligation for short-term lease (lease term not exceeding 12 months)and low-value asset lease, and includes related lease payment into current profits and losses or relevant asset costs in each period withinthe lease term pursuant to the straight-line method.
(2) Supor as the lessor
Supor will divide the lease into financing lease and operating lease on the lease commencement date. Financing lease refers tothe actual transfer of the lease of almost all the risks and rewards related to the lease asset ownership regardless of whether theownership is finally transferred. The operating lease refers to the other leases except for the financing lease.
Supor, as the lessor, provides classification of subleases based on the right-of-use assets created by the original lease rather thanthe underlying assets of the original lease. If the original lease is a short-term lease and Supor elects to apply the simplified treatmentof the above short-term lease to the original lease, then Supor classifies the sublease as an operating lease.
Under the financing lease, at the beginning of the lease term, Supor confirms financing lease receivables for financing lease andderecognizes the financial leasing assets. Supor makes the net investment in a lease as the entry value of financing lease receivables atthe time of initial measurement for financing lease receivables. The net investment in a lease is the sum of the present value ofunguaranteed residual value and rental receipts not gotten yet on the commencement date of the lease term which is subject todiscounting in accordance with the implicit rate of the lease.
Supor calculates and confirms the interest revenue in each period within the lease term as the fixed periodic rate. Thederecognition and impairment of financing lease receivables are made based on the accounting policies described in Note 5. 9 "Financialinstruments" and 10 "Financial assets impairment" for accounting treatment. The variable lease payment which is not included into thenet investment in the lease is included into the current profits and losses when it actually occurs.
The lease receipts of operating lease are confirmed as rental revenue within the lease term in light of straight-line method. Suporcapitalizes the initial direct expenses pertaining to operating leases as well as apportions and includes such expenses into current profitsand losses as per the same basis used for recognizing the rental revenue within the lease term. The variable lease payment which is notincluded into the lease receipt is included into the current profits and losses when it actually occurs.
31. Related parties
If one party controls or jointly controls the other party or imposes a significant impact on the other party, and two or more partiesare controlled or jointly controlled by one party, these parties are related parties. A related party can be an individual or enterprise. Anenterprise that is only controlled by the state but does not have other related party relations does not constitute a related party.
Besides, the Company confirms Supor or its related parties pursuant to the Administrative Measures for the Disclosure ofInformation of Listed Companies issued by China Securities Regulatory Commission.
32. Segment report
Please refer to XVI. 1 "Segment information" for relevant accounting policies of segment reports.
33. Other important accounting policies and estimates
(1) Repurchasing shares
If Supor reduces its capital by acquiring the shares of the Company with approval, then it shall reduce equities according to the totalamount of the face value of cancelled shares, and adjust the difference between the price paid to purchase shares back (includingtransaction cost) and the face value of shares. The part exceeding the total face value shall be used to write down capital reserve (sharecapital premium), surplus reserve and undistributed profit. If the price is lower than the total book value, then the part lower shall beadded with capital reserve (share capital premium).Shares repurchased by Supor shall be managed as treasury shares before they are cancelled or transferred; total expenditure ofrepurchased shares shall be transferred as the cost of treasury shares.When treasury shares are transferred, the part higher than their cost shall be transferred to increase capital reserve (share capitalpremium); the part lower than the cost of treasury shares shall write down capital reserve (share capital premium), surplus reserve andundistributed profit in sequence.If Supor repurchase shares for the reason of equity incentive, it shall treat all expenses on shares repurchase as treasury shares whilerepurchasing and make registration for future reference.
(2) Hedge accounting
Some financial instruments are used as hedging tools by Supor to avoid certain risks. For those hedges meeting requirements specified,Supor will deal with them by hedge accounting method. The hedge of Supor is fair value hedge. The hedge for foreign exchange riskof firm commitment is used as fair value hedge by Supor.The hedging tool and the hedged item are formally specified by Supor at the beginning of hedge with written documents about thehedging relationship, risk management strategy and risk management objectives. In addition, the hedge effectiveness will be assessedcontinuously by Supor from the beginning of hedge.(a) Fair value hedgeThe gains or losses from the hedging tool specified as fair value hedge with qualification are included into the current profits and losses.Otherwise, the profits or losses from non-tradable equity instruments (or their components) measured at the fair value with their changesincluded into other comprehensive incomes are included into other comprehensive earning. The gains or losses formed from thehedging risks of the hedged item shall be included into current profits and losses and the book value of the recognized hedged item notmeasured at the fair value shall be adjusted simultaneously. The related gain or loss from the hedged item that is measured as fair valueis included into the current profits and losses and other comprehensive income without book value adjustment.The hedge accounting is terminated when the hedging relationship is revoked by Supor, the hedging tool is expired or sold, the contractis terminated or exercised, or the condition is out of qualification.
(3) Measurement of fair value
Fair value, refers to the price that market participant can obtain or needs to pay after selling an asset or transferring a liability, amongthe orderly transactions made on the measurement date. Supor measures relevant asset or liability and considers the characteristics ofthis asset or liability at fair value; supposes the sales of assets or transfer of liabilities by market participant are orderly transactionunder current market conditions; supposes the orderly sales of assets or transfer of liabilities are carried out in the main market of
relevant assets or liabilities; supposes the transaction is made in the most favorable market for relevant assets or liabilities when thereis no main market. Supor adopts the assumptions used by market participants to maximize their economic benefits when they priceassets or liabilities.Supor judges whether the fair value at initial recognition equals to its transaction price according to transaction nature and thecharacteristics of relevant assets or liabilities; if the transaction price is not equal to the fair value, relevant gains or losses will beincluded into the current profits and losses, unless otherwise specified by relevant accounting standards.Supor adopts the valuation technique that is applicable to the current situation and has enough available data and other information tosupport. Mainly used valuation techniques include market approach, income approach and cost approach. In the application of valuationtechniques, relevant observable input values shall be used first, and unobserved input values can only be used when relevant observableinput values cannot be obtained or it is not feasible to obtain them.Input values used by Supor for fair value measurement are divided into 3 levels. The first level of input values will be used first, andthen the second level and the third level. The first level of input values is the quotations of same assets or liabilities that can be obtainedon the measurement date and are not adjusted in the active market; the second level of input values is the direct or indirect observableinput values of relevant assets or liabilities other than the first level of input values; the third level of input values is the unobservableinput values of relevant assets or liabilities.Supor measures non-financial assets with fair value, considers market participant's ability to use this asset in the best way to generateeconomic benefits, or the ability to sell this asset to other market participants who can use this asset in the best way to generate economicbenefits. To measure a liability with fair value, the Group supposes this liability is transferred to other market participants on themeasurement date, and further exists after transfer, and the market participant, who is the transferee, performs obligations. To measureone's own equity instrument with fair value, suppose this equity instrument is transferred to other market participants on themeasurement data, and further exits after transfer, and the market participant, as the transferee, obtains relevant rights to this instrumentand undertakes corresponding obligations.
34. Change of important accounting policies and estimates
(1) Change of important accounting policies
□Applicable ?Not-applicable
(2) Change of important accounting estimates
□Applicable ?Not-applicable
VI. Taxes
1. Main taxes and tax rates
| Taxes | Tax bases | Tax rates |
| VAT | The taxable revenue from sales of commodities or rendering of services | Taxable income is calculated at output tax rates of 0, 6%, 9%, and 13%, and VAT is calculated based on the difference after deducting the input tax allowable for the current period. |
| Urban maintenance and construction tax | Actually paid VAT | 7% |
| Enterprise income tax | Taxable income | Corporate income tax rate is 25%. The overseas subsidiary GSIM is subject to the tax rate of 22%; the Vietnam Supor and AFS, 20%; and the SEADA, 17%. |
| Education surcharge | Actually paid VAT | 3% |
| Local education surcharge | Actually paid VAT | 2% |
| Housing property tax | for housing property levied on an ad valorem basis, housing property tax is levied at the rate of 1.2% of the residual value after the deduction of 30% of the original value; for housing property levied on the basis of rent, housing property tax is levied at the rate of 12% of rental revenue. | 1.2%、12% |
VII. Notes to Items of Consolidated Financial Statements
1. Monetary capital
Unit: RMB
| Item | Closing balance | Opening balance |
| Cash on hand | 45,511.13 | 71,122.80 |
| Cash in bank | 2,982,149,647.87 | 2,420,563,810.46 |
| Other monetary capital | 497,750,867.90 | 233,417,484.21 |
| Total | 3,479,946,026.90 | 2,654,052,417.47 |
| Including: deposited overseas | 61,166,935.87 | 78,040,992.57 |
Other remarks:
1) On June 30, 2022, the bank deposit with restricted use was RMB263,468.43 (December 31, 2021: RMB263,468.43) of the frozenbank account of the deregistered branch, and the remaining bank deposit of RMB2,981,886,179.44 was not restricted.
2) On June 30, 2022, other monetary capitals were the security of acceptance bills with restricted use of RMB412,530,000.00(December 31, 2021: RMB150,545,967.12), the deposit of Kuaishou, Alipay, TikTok and other e-commerce platforms ofRMB550,000.00 (December 31, 2021: RMB1,511,302.86), and the deposit security of advance payment financing ofRMB58,000,000.00 (December 31, 2021: RMB58,000,000.00), and RMB26,670,867.90 (December 31, 2021: RMB 23,360,214.23)of unrestricted monetary capitals such as Alipay wallet, JD Wallet, TikTok Wallet, securities settlement account, futures settlementaccount and Youzan account.
3) On June 30, 2022, the monetary capital deposited by Supor in Vietnam was equivalent to RMB53,122,463.70 (December 31, 2021:
equivalent to RMB72,031,237.91); the monetary capital deposited in Singapore was equivalent to RMB3,524,393.06 (December 31,2021: equivalent to RMB2,195,848.27); the monetary capital deposited in Indonesia was equivalent to RMB4,520,079.11 (December31, 2021: equivalent to RMB3,813,906.39).
2. Transactional financial assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Financial assets measured at the fair value with their changes included into the current profits and losses | 220,550,529.85 | 180,312,742.31 |
| Including: | ||
| - Short-term financial products | 220,550,529.85 | 180,312,742.31 |
| Total | 220,550,529.85 | 180,312,742.31 |
Other remarks:
On June 30, 2022, financial assets measured at the fair value with their changes included into the current profits and losses are thefinancial products purchased by Shaoxing Supor Housewares and Shaoxing Supor, totaling RMB220,000,000.00 (December 31, 2021:
RMB180,000,000.00). The income of these financial products fluctuates and is linked to the interest rate and exchange rate. At the endof the current period, the gains from changes in fair value was recognized to be RMB550,529.85 (December 31, 2021: RMB312,742.31).
3. Notes receivable
(1) Classification list of the notes receivable
Unit: RMB
| Item | Closing balance | Opening balance |
| Bank acceptance | 35,454,679.55 | 54,879,357.24 |
| Total | 35,454,679.55 | 54,879,357.24 |
Unit: RMB
| Categories | Closing balance | Opening balance | ||||||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Provision proportion | Amount | Proportion | Amount | Provision proportion | |||
| Notes receivable for provision for bad debts on a portfolio | 35,454,679.55 | 100.00% | 35,454,679.55 | 54,879,357.24 | 100.00% | 54,879,357.24 | ||||
| Including: | ||||||||||
| Portfolio: Bank acceptance | 35,454,679.55 | 100.00% | 35,454,679.55 | 54,879,357.24 | 100.00% | 54,879,357.24 | ||||
| Total | 35,454,679.55 | 100.00% | 35,454,679.55 | 54,879,357.24 | 100.00% | 54,879,357.24 | ||||
If provision for bad debts for notes receivable is made based on the general model of expected credit losses, please disclose the relevantinformation about the provision for bad debts with reference to the disclosure of other receivables:
□Applicable ?Not-applicable
(2) Pledged notes receivable at the end of the year for the Company
On June 30, 2022, Supor had no pledged notes receivable (December 31, 2021: None).
(3) Endorsed or discounted notes receivable undue at the balance sheet date at the end of the period for theCompany
Unit: RMB
| Item | Closing balance recognized | Closing balance derecognized |
| Bank acceptance | 32,678,311.69 | |
| Total | 32,678,311.69 |
Other remarks:
By June 30, 2022, Supor's undue and endorsed notes receivable of RMB32,678,311.69 have not been recognized as notes transferredto the suppliers to settle the accounts payable. This is mainly because that, according to the management, the risks and remunerationsattached to the ownership of the notes have not been actually transferred. The book values of the said undue notes receivableapproximate their fair values. The said undue notes receivable will get mature within 1 year.
(4) Notes transferring to accounts receivable because the drawer fails to perform contract at the end of theperiod
On June 30, 2022, Supor had no notes transferred to accounts receivable as the result of the drawer's nonperformance (December 31,2021: None).
4. Accounts receivable
(1) Details on categories
Unit: RMB
| Categories | Closing balance | Opening balance | ||||||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Provision proportion | Amount | Proportion | Amount | Provision proportion | |||
| Accounts receivables for provision for bad debts on an individual basis | 4,523,328.43 | 0.16% | 4,523,328.43 | 100.00% | ||||||
| Including: | ||||||||||
| Accounts receivable for provision for bad debts by portfolio | 2,243,674,795.96 | 100.00% | 92,531,866.78 | 4.12% | 2,151,142,929.18 | 2,834,428,535.98 | 99.84% | 117,482,550.65 | 4.14% | 2,716,945,985.33 |
| Including: | ||||||||||
| Portfolio 1: age portfolio | 2,111,798,598.40 | 94.12% | 92,399,990.58 | 4.38% | 2,019,398,607.81 | 2,751,659,068.87 | 96.92% | 117,399,781.18 | 4.27% | 2,634,259,287.69 |
| Portfolio 2: low-risk portfolio | 131,876,197.56 | 5.88% | 131,876.20 | 0.10% | 131,744,321.36 | 82,769,467.11 | 2.92% | 82,769.47 | 0.10% | 82,686,697.64 |
| Total | 2,243,674,795.96 | 100.00% | 92,531,866.78 | 4.12% | 2,151,142,929.18 | 2,838,951,864.41 | 100.00% | 122,005,879.08 | 4.30% | 2,716,945,985.33 |
Provision for bad debts by portfolio: Portfolio 1: age portfolio
Unit: RMB
| Name | Closing balance |
| Book balance | Provision for bad debts | Provision proportion | |
| Within 1 year (inclusive) | 2,107,141,430.57 | 91,198,654.34 | 4.33% |
| 1-2 years (inclusive) | 2,620,205.73 | 209,616.45 | 8.00% |
| 2-3 years (inclusive) | 991,416.23 | 148,712.43 | 15.00% |
| 3-4 years (inclusive) | 399,675.36 | 199,837.68 | 50.00% |
| 4-5 years (inclusive) | 13,504.15 | 10,803.32 | 80.00% |
| Over 5 years | 632,366.36 | 632,366.36 | 100.00% |
| Total | 2,111,798,598.40 | 92,399,990.58 |
Explanation of the basis for determining such portfolio:
The expected credit loss rate is calculated upon the experience on the actual credit loss, and adjusted based on the difference betweenthe economy during the historic period of data collection, the current economy and the economy during the duration expected by Supor.If provision for bad debts for accounts receivable is made based on the general model of expected credit losses, please disclose therelevant information about the provision for bad debts with reference to the disclosure of other receivables:
□Applicable ?Not-applicable
Disclosure by ages
Unit: RMB
| Ages | Closing balance |
| Within 1 year (inclusive) | 2,239,017,628.13 |
| 1-2 years | 2,620,205.73 |
| 2-3 years | 991,416.23 |
| Over 3 years | 1,045,545.87 |
| 3-4 years | 399,675.36 |
| 4-5 years | 13,504.15 |
| Over 5 years | 632,366.36 |
| Total | 2,243,674,795.96 |
(2) Provision for bad debts accrued, collected or reversed in the current period
Provision for bad debts in current period:
Unit: RMB
| Categories | Opening balance | Amount of changes in the current period | Closing balance | |||
| Provision | Collected or reversed | Canceled after verification | Others | |||
| Provision for bad debts for accounts receivable | 122,005,879.08 | -25,130,551.51 | 4,523,328.43 | 179,867.64 | 92,531,866.78 | |
| Total | 122,005,879.08 | -25,130,551.51 | 4,523,328.43 | 179,867.64 | 92,531,866.78 | |
Other remarks:
Other changes represent the increase of RMB179,867.64 in the provision for bad debts due to conversion differences of foreign currency
statements as a result of changes in exchange rates.
(3) Accounts receivable actually written off in current period
Unit: RMB
| Item | Amount |
| Accounts receivable actually written off | 4,523,328.43 |
Including significant accounts receivable written off:
Unit: RMB
| Name of organization | Type of accounts receivable | Amount | Reason | Write-off procedures performed | Whether the amount was from connected transactions |
| Customer A | Goods payment | 4,523,328.43 | Bad debts of long ages cannot be recovered. | Approval by the management | No |
| Total | 4,523,328.43 |
(4) Accounts receivable details of the top 5 closing balances by debtors
Unit: RMB
| Name of organization | Closing balance of accounts receivable | Proportion in the total closing balance of accounts receivable | Closing balance of provision for bad debts |
| SEB ASIA LTD. | 1,316,557,188.89 | 58.68% | 52,662,287.56 |
| Customer B | 238,549,177.73 | 10.63% | 11,934,671.97 |
| Customer C | 97,282,171.59 | 4.34% | 97,282.17 |
| Customer D | 57,021,083.22 | 2.54% | 2,851,054.16 |
| Customer E | 30,004,876.05 | 1.34% | 1,541,325.92 |
| Total | 1,739,414,497.48 | 77.53% |
5. Receivables financing
Unit: RMB
| Item | Closing balance | Opening balance |
| Notes receivable | 232,348,975.14 | 3,312,225.62 |
| Total | 232,348,975.14 | 3,312,225.62 |
Other remarks:
Taking its daily fund management needs into consideration, Supor will endorse or discount certain bank acceptance bills. In view ofthe amount and frequency of endorsement or discount of bank acceptance bills, Supor judges that the objective of this business modelis to simultaneously collect the contract cash flow and sell the notes receivable. Therefore, it classifies such notes receivable as financialassets measured at the fair value with their changes included into other comprehensive incomes and presents them as receivablesfinancing.On June 30, 2022, Supor had no pledged receivables financing.Changes in receivables financing and its fair value during the reporting period
□Applicable ?Not-applicable
If impairment provision for receivables financing is made based on the general model of expected credit losses, please disclose therelevant information about the impairment provision with reference to the disclosure of other receivables:
□Applicable ?Not-applicable
Endorsed or discounted notes receivable undue at the balance sheet date at the end of the year
| Item | Closing balance recognized | Closing balance derecognized |
| Bank acceptance | 3,594,035,426.52 | |
| Total | 3,594,035,426.52 |
Other remarks:
In order to settle part of the payables, Supor endorsed the undue notes receivable of the same amount to the suppliers. Its managementbelieves that some undue notes meet almost all the risks and rewards of ownership, and that the current obligations of relevant payableshave met all the conditions for release. Therefore, the recognition of relevant notes receivable and payables is terminated. The largestpotential loss suffered by Supor's continued involvement is the amount of undue notes receivable endorsed by Supor to its suppliers.The said undue notes receivable will get mature within 1 year.
6. Advance payment
(1) Listing by ages
Unit: RMB
| Ages | Closing balance | Opening balance | ||
| Amount | Proportion | Amount | Proportion | |
| Within 1 year | 396,806,716.28 | 99.50% | 384,209,532.57 | 99.70% |
| 1-2 years | 1,855,442.32 | 0.46% | 988,460.68 | 0.26% |
| 2-3 years | 6,000.00 | 0.00% | ||
| Over 3 years | 151,518.29 | 0.04% | 163,869.60 | 0.04% |
| Total | 398,813,676.89 | 385,367,862.85 | ||
Other remarks:
The accounting age will be calculated from the advance payment confirmation day.
(2) Advance payment of the top 5 closing balances by prepayment objects
| Name of organization | Book balance | Proportion in the balance of advance payment (%) |
| Supplier A | 52,605,307.73 | 13.19% |
| Supplier B | 40,349,387.63 | 10.12% |
| Supplier C | 27,348,484.59 | 6.86% |
| Supplier D | 25,765,045.91 | 6.46% |
| Supplier E | 23,926,576.70 | 6.00% |
| Subtotal | 169,994,802.56 | 42.63% |
7. Other receivables
Unit: RMB
| Item | Closing balance | Opening balance |
| Other receivables | 16,635,885.82 | 12,159,756.67 |
| Total | 16,635,885.82 | 12,159,756.67 |
(1) Other receivables
1) Other receivables categorized by nature
Unit: RMB
| Nature of receivables | Ending book balance | Opening book balance |
| Deposit as security | 10,262,378.88 | 9,533,739.58 |
| Temporary payment receivable | 3,350,336.37 | 2,817,399.32 |
| Personal deposit | 4,956,187.68 | 1,550,886.08 |
| Tax refund receivable | 1,523,227.27 | 1,237,370.65 |
| Total | 20,092,130.20 | 15,139,395.63 |
2) Provision for bad debts
Unit: RMB
| Provision for bad debts | Phase I | Phase II | Phase III | Total |
| Predicted credit loss in future 12 months | Predicted credit loss in the whole period of existence (without credit impairment) | Predicted credit loss in the whole period of existence (with credit impairment) | ||
| Amount on January 1, 2022 | 2,979,638.96 | 2,979,638.96 | ||
| Balance on January 1, 2022 in the current period | ||||
| Provision for bad debts during the reporting period | 473,075.27 | 473,075.27 | ||
| Other changes | 3,530.15 | 3,530.15 | ||
| Balance on June 30, 2022 | 3,456,244.38 | 3,456,244.38 |
Changes in book balance of loss provision due to significant changes in the current period
□Applicable ?Not-applicable
Disclosure by ages
Unit: RMB
| Ages | Closing balance |
| Within 1 year (inclusive) | 12,157,466.65 |
| 1-2 years | 3,509,630.29 |
| 2-3 years | 1,692,349.81 |
| Over 3 years | 2,732,683.45 |
| 3-4 years | 595,495.78 |
| 4-5 years | 407,956.60 |
| Over 5 years | 1,729,231.07 |
| Total | 20,092,130.20 |
(3) Provision for bad debts accrued, collected or reversed in the current periodProvision for bad debts in current period:
Unit: RMB
| Categories | Opening balance | Amount of changes in the current period | Closing balance | |||
| Provision | Collected or reversed | Canceled after verification | Others | |||
| Provision for bad debts of other receivables | 2,979,638.96 | 473,075.27 | 3,530.15 | 3,456,244.38 | ||
| Total | 2,979,638.96 | 473,075.27 | 3,530.15 | 3,456,244.38 | ||
Other remarks:
Other changes represent the increase of RMB3,530.15 in the provision for bad debts due to conversion differences of foreign currencystatements as a result of changes in exchange rates.
(4) Other receivable details of the top 5 closing balances by debtors
Unit: RMB
| Name of organization | Nature of receivables | Closing balance | Ages | Proportion in the total closing balance of other receivables | Closing balance of provision for bad debts |
| Customer F | Deposit as security | 1,980,000.00 | 1-2 years | 9.85% | 158,400.00 |
| Customer B | Temporary payment receivable/Deposit as security | 1,733,257.93 | 1-3 years | 8.63% | 122,662.90 |
| Tax refund receivable | Tax refund receivable | 1,523,227.27 | Within 1 year | 7.58% | |
| Customer G | Deposit as security | 1,180,000.00 | Within 1 year | 5.87% | 59,000.00 |
| Customer H | Temporary payment receivable/Deposit as security | 936,580.00 | Within 1 year | 4.66% | 46,829.00 |
| Total | 7,353,065.20 | 36.59% | 386,891.90 |
8. Inventories
If the Company needs to comply with real estate industry disclosure requirementsNo
(1) Inventory classification
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Inventory depreciation reserve/impairment provision for contract performance cost | Book value | Book balance | Inventory depreciation reserve/impairment provision for contract performance cost | Book value | |
| Raw materials | 465,350,909.69 | 14,963,593.22 | 450,387,316.47 | 600,492,823.00 | 10,291,195.98 | 590,201,627.02 |
| Unfinished products | 91,113,125.00 | 91,113,125.00 | 106,157,761.25 | 106,157,761.25 | ||
| Finished products | 1,663,173,851.20 | 26,250,346.17 | 1,636,923,505.03 | 2,289,813,383.66 | 14,771,911.61 | 2,275,041,472.05 |
| Low value consumables | 90,321,823.98 | 98,429.17 | 90,223,394.81 | 107,094,627.93 | 29,787.94 | 107,064,839.99 |
| Packing materials | 11,671,914.21 | 11,671,914.21 | 18,051,355.02 | 18,051,355.02 | ||
| Total | 2,321,631,624.08 | 41,312,368.56 | 2,280,319,255.52 | 3,121,609,950.86 | 25,092,895.53 | 3,096,517,055.33 |
(2) Inventory depreciation reserve and impairment provision for contract performance cost
Unit: RMB
| Item | Opening balance | Increase | Decrease | Closing balance | ||
| Provision | Others | Reversed or written off | Others | |||
| Raw materials | 10,291,195.98 | 7,266,976.22 | 157,317.64 | 2,751,896.62 | 14,963,593.22 | |
| Finished products | 14,771,911.61 | 13,779,843.28 | 17,110.86 | 2,318,519.58 | 26,250,346.17 | |
| Low value consumables | 29,787.94 | 68,641.23 | 98,429.17 | |||
| Total | 25,092,895.53 | 21,115,460.73 | 174,428.50 | 5,070,416.20 | 41,312,368.56 | |
Other remarks:
Other changes represent the increase of RMB 174,428.50 in inventory depreciation reserve due to conversion differences of foreigncurrency statements as a result of changes in exchange rates.
9. Other current assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Return cost receivable | 10,829,085.35 | 13,377,148.99 |
| Creditable VAT | 42,226,764.49 | 171,398,751.97 |
| Term deposit [Note] | 592,407,534.24 | 1,863,761,369.84 |
| Others | 14,190,958.85 | 6,490,111.83 |
| Total | 659,654,342.93 | 2,055,027,382.63 |
Other remarks:
Note: The term deposits are for the purpose of earning interest and as at 30 June 2022, the principal amount of the term deposits wasRMB 550,000,000.00 (31 December 2021: RMB 1,700,000,000.00) and the interest receivable was RMB 42,407,534.24 (31 December2021: RMB 163,761,369.84).
10. Other debt investment
Unit: RMB
| Item | Opening balance | Interest receivable | fair value changes in the reporting period | Closing balance | Cost | Cumulative changes of fair value | Loss provisions that are cumulatively determined in other comprehensive incomes | Remarks |
| Negotiable certificate of deposit | 298,191,205.49 | 17,776,917.81 | 586,813,657.54 | 569,036,739.73 | ||||
| Minus: Part due within one year | ||||||||
| Total | 298,191,205.49 | 17,776,917.81 | 586,813,657.54 | 569,036,739.73 |
Important other debt investment
Unit: RMB
| Other creditor's items | Closing balance | Opening balance | ||||||
| Book value | Face value interest rate | Effective annual interest rate | Maturity date | Book value | Face value interest rate | Effective annual interest rate | Maturity date | |
| The Company - Negotiable certificate of deposit at Bank of China | 40,000,000.00 | 3.85% | 3.71% | March 24, 2024 | 40,000,000.00 | 3.85% | 3.71% | March 24, 2024 |
| The Company - Negotiable certificate of deposit at Bank of China | 60,000,000.00 | 3.85% | 3.73% | April 16, 2024 | 60,000,000.00 | 3.85% | 3.73% | April 16, 2024 |
| The Company - Negotiable certificate of deposit at Bank of China | 10,000,000.00 | 3.85% | 3.80% | April 2, 2024 | 10,000,000.00 | 3.85% | 3.80% | April 2, 2024 |
| The Company - Negotiable certificate of deposit at Bank of China | 60,000,000.00 | 3.85% | 3.78% | March 25, 2024 | 60,000,000.00 | 3.85% | 3.78% | March 25, 2024 |
| The Company - Negotiable certificate of deposit at Bank of China | 20,000,000.00 | 3.85% | 3.78% | April 9, 2024 | 20,000,000.00 | 3.85% | 3.78% | April 9, 2024 |
| Shaoxing Supor Housewares - Negotiable certificate of deposit at China Guangfa Bank | 100,000,000.00 | 3.60% | 3.50% | February 8, 2024 | 100,000,000.00 | 3.60% | 3.50% | February 8, 2024 |
| The Company - Negotiable certificate of deposit at Bank of China | 30,000,000.00 | 3.85% | 3.93% | December 11, 2023 | ||||
| Shaoxing Supor Housewares - Negotiable certificate of deposit at China Guangfa Bank | 200,000,000.00 | 3.55% | 3.43% | April 21, 2025 | ||||
| Shaoxing Supor Housewares - Negotiable certificate of deposit at China Guangfa Bank | 50,000,000.00 | 3.55% | 3.36% | March 11, 2025 | ||||
| Total | 570,000,000.00 | 290,000,000.00 |
Changes in book balance of loss provision due to significant changes in the current period
□Applicable ?Not-applicable
Other remarks:
11. Long-term equity investment
Unit: RMB
| Invested unit | Opening balance (book value) | Increase/decrease | Closing balance (book value) | Closing balance of impairment provision | |||||||
| Investment increased | Investment decreased | Investment profit or loss recognized by equity method | Adjustment in other comprehensive income | Changes in other equity | Cash dividend/profit declared for distribution | Accrued impairment provision | Others | ||||
| I. Joint Venture | |||||||||||
| II. Associated Enterprise | |||||||||||
| Wuhan Anzai Cookware Co., Ltd. | 65,600,611.64 | -581,032.98 | 65,019,578.66 | ||||||||
| Subtotal | 65,600,611.64 | -581,032.98 | 65,019,578.66 | ||||||||
| Total | 65,600,611.64 | -581,032.98 | 65,019,578.66 | ||||||||
12. Fixed assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Fixed assets | 1,278,054,718.16 | 1,291,902,992.54 |
| Total | 1,278,054,718.16 | 1,291,902,992.54 |
(1) Fixed assets
Unit: RMB
| Item | Buildings and structures | General equipment | Special equipment | Transport facilities | Total |
| I. Original Book Value: | |||||
| 1. Opening balance | 1,186,764,153.98 | 278,665,369.15 | 916,415,607.69 | 32,649,668.69 | 2,414,494,799.51 |
| 2. Increase | 12,953,658.98 | 14,856,164.33 | 23,470,053.79 | 491,698.70 | 51,771,575.80 |
| (1) Acquisition | 2,520,607.63 | 9,012,554.47 | 13,858,303.01 | 491,698.70 | 25,883,163.81 |
| (2)Transferred in from construction in progress | 10,433,051.35 | 5,843,609.86 | 9,611,750.78 | 25,888,411.99 |
| (3) Increase from enterprise merger | |||||
| 3. Decrease | 3,993,719.68 | 3,015,226.97 | 19,714,325.92 | 2,242,697.40 | 28,965,969.97 |
| (1) Disposal or scrapping | 3,993,719.68 | 3,015,226.97 | 19,714,325.92 | 2,242,697.40 | 28,965,969.97 |
| 4. Effect of changes in exchange rate | 976,703.11 | 269,162.03 | 2,089,959.54 | 72,308.61 | 3,408,133.29 |
| 5. Closing balance | 1,196,700,796.39 | 290,775,468.54 | 922,261,295.10 | 30,970,978.60 | 2,440,708,538.63 |
| II. Accumulated depreciation | |||||
| 1. Opening balance | 331,504,046.92 | 192,857,951.65 | 572,072,689.24 | 26,157,119.16 | 1,122,591,806.97 |
| 2. Increase | 21,237,529.59 | 12,768,709.73 | 26,651,947.97 | 1,604,105.51 | 62,262,292.80 |
| (1) Provision | 21,237,529.59 | 12,768,709.73 | 26,651,947.97 | 1,604,105.51 | 62,262,292.80 |
| 3. Decrease | 2,832,895.58 | 18,875,625.98 | 1,860,715.81 | 23,569,237.37 | |
| (1) Disposal or scrapping | 2,832,895.58 | 18,875,625.98 | 1,860,715.81 | 23,569,237.37 | |
| 4. Effect of changes in exchange rate | 306,905.55 | 157,838.90 | 849,539.31 | 54,674.31 | 1,368,958.07 |
| 5. Closing balance | 353,048,482.06 | 202,951,604.70 | 580,698,550.54 | 25,955,183.17 | 1,162,653,820.47 |
| III. Book Value | |||||
| 1. Closing book value | 843,652,314.33 | 87,823,863.84 | 341,562,744.56 | 5,015,795.43 | 1,278,054,718.16 |
| 2. Opening book value | 855,260,107.06 | 85,807,417.50 | 344,342,918.45 | 6,492,549.53 | 1,291,902,992.54 |
(2) Fixed assets with certificate of titles unsettled
Unit: RMB
| Item | Book value | Reasons for unsettlement |
| Function dormitory of Shaoxing Supor | 37,210,966.69 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| No.3 plant of Shaoxing Supor | 27,429,391.29 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| No.1 plant of Shaoxing Supor | 25,175,535.90 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| No.8 plant of Shaoxing Supor | 29,812,123.41 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| Function cafeteria of Shaoxing Supor | 12,402,452.40 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| No.12 plant of Shaoxing Supor | 12,532,437.72 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| Transformer substation (35 kV) of Shaoxing Supor | 3,359,461.76 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| No.13 plant of Shaoxing Supor | 16,241,358.09 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| No.14 plant of Shaoxing Supor | 24,782,244.58 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| No.15 plant of Shaoxing Supor | 43,066,611.03 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| Forklift charge room of Shaoxing Supor | 919,603.94 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| Generator room of P&R Products | 2,141.89 | Transfer procedures of land use right certificate are not settled due to land ownership issue |
| Water pump building and structures of P&R Products | 103,590.88 | Transfer procedures of land use right certificate are not settled due to land ownership issue |
| Extended plant for bakelite workshop of P&R Products | 228,651.59 | Transfer procedures of land use right certificate are not settled due to land ownership issue |
| Polishing workshop of P&R Products | 106,560.00 | Transfer procedures of land use right certificate are not settled due to land ownership issue |
| Workshop warehouse access canopy of Supor LKA | 37,441.98 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| Hood laboratory civil construction plumbing and gas ventilation of Supor LKA | 67,586.36 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| Forklift charging room of Supor LKA | 163,551.03 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| Construction project of the finished product warehouse of SuporLKA and the quality office area | 43,713.48 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| Design and decoration project of the indoor exhibition hall for Supor LKA | 1,043,449.94 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| Water purifier dust-free workshop of Supor LKA | 660,644.47 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| High-voltage power distribution room of Supor LKA | 5,657,042.52 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| Stove warehouse of Supor LKA | 19,292,755.88 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| Dormitory of Supor LKA | 24,286,349.00 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| Underground water pump room of Supor LKA | 1,831,296.84 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| Reception room of Supor LKA | 399,242.25 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| Bottling storage room of Supor LKA | 164,178.51 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| R&D workshop of Supor LKA | 4,617,124.60 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| Test workshop of Supor LKA | 4,069,069.01 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| Water purifier workshop of Supor LKA | 18,926,114.17 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| Stove workshop of Supor LKA | 18,064,381.99 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| Water purifier warehouse of Supor LKA | 20,369,174.17 | After all projects are completed, and the completion and settlement procedures are fulfilled, the property ownership certificate shall be processed uniformly |
| Total | 353,066,247.37 |
13. Construction in progress
Unit: RMB
| Item | Closing balance | Opening balance |
| Construction in progress | 21,688,231.49 | 26,482,779.31 |
| Total | 21,688,231.49 | 26,482,779.31 |
(1) Details
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Piecemeal projects | 13,569,301.92 | 13,569,301.92 | 18,462,190.40 | 18,462,190.40 | ||
| Equipment payment | 8,118,929.57 | 8,118,929.57 | 2,760,998.31 | 2,760,998.31 | ||
| Zhejiang WMF factory project | 5,259,590.60 | 5,259,590.60 | ||||
| Total | 21,688,231.49 | 21,688,231.49 | 26,482,779.31 | 26,482,779.31 | ||
(2) Changes in significant projects
Unit: RMB
| Item | Budgets | Opening balance | Increase | Transferred to fixed assets | Other decrease | Closing balance | Accumulated investment to budget | Completion percentage (%) | Accumulated amount of interest capitalization | Including: amount of interest capitalization in current period | rate of interest capitalization in current period | Capital source |
| Piecemeal projects | 18,462,190.40 | 11,760,812.30 | 16,653,700.78 | 13,569,301.92 | Own fund | |||||||
| Equipment payment | 2,760,998.31 | 6,308,144.76 | 950,213.50 | 8,118,929.57 | Own fund | |||||||
| Zhejiang WMF factory project | 248,276,513.76 | 5,259,590.60 | 3,024,907.11 | 8,284,497.71 | 97.17% | 100.00% | Own fund | |||||
| Total | 248,276,513.76 | 26,482,779.31 | 21,093,864.17 | 25,888,411.99 | 21,688,231.49 |
Other remarksAs at June 30, 2022, the project budget of Zhejiang WMF's plant was RMB 248,276,513.76, including land use rights of RMB67,164,093.75.
14. Right-of-use assets
Unit: RMB
| Item | Buildings and structures | Land | Total |
| I. Original Book Value: | |||
| 1. Opening balance | 227,141,323.93 | 2,997,832.55 | 230,139,156.48 |
| 2. Increase | 37,173,206.06 | 37,173,206.06 | |
| 3. Decrease | 31,361,857.63 | 31,361,857.63 | |
| 4. Effect of changes in exchange rate | 4,324.98 | 90,731.77 | 95,056.75 |
| 5. Closing balance | 232,956,997.34 | 3,088,564.32 | 236,045,561.66 |
| II. Accumulated depreciation | |||
| 1. Opening balance | 34,518,604.93 | 91,907.42 | 34,610,512.35 |
| 2. Increase | 22,427,196.51 | 46,195.37 | 22,473,391.88 |
| (1) Provision | 22,427,196.51 | 46,195.37 | 22,473,391.88 |
| 3. Decrease | 11,972,839.10 | 11,972,839.10 | |
| (1) Disposal | 11,972,839.10 | 11,972,839.10 | |
| 4. Effect of changes in exchange rate | -3,526.00 | 3,930.82 | 404.82 |
| 5. Closing balance | 44,969,436.34 | 142,033.61 | 45,111,469.95 |
| III. Book Value | |||
| 1. Closing book value | 187,987,561.00 | 2,946,530.71 | 190,934,091.71 |
| 2. Opening book value | 192,622,719.00 | 2,905,925.13 | 195,528,644.13 |
15. Intangible assets
(1) Details
Unit: RMB
| Item | Land use right | Trademark right | Software | Total |
| I. Original Book Value: | ||||
| 1. Opening balance | 474,749,614.53 | 47,328,811.32 | 87,015,884.82 | 609,094,310.67 |
| 2. Increase | 5,021,567.82 | 5,021,567.82 | ||
| (1) Acquisition | 5,021,567.82 | 5,021,567.82 | ||
| (2) In-house R&D | ||||
| (3) Increase from enterprise merger |
| 3. Decrease | 189,655.17 | 189,655.17 | ||
| (1) Disposal | 189,655.17 | 189,655.17 | ||
| 4. Effect of changes in exchange rate | 150,933.35 | 23,729.95 | 174,663.30 | |
| 5. Closing balance | 474,900,547.88 | 47,328,811.32 | 91,871,527.42 | 614,100,886.62 |
| II. Accumulated Amortization | ||||
| 1. Opening balance | 88,398,664.67 | 28,352,236.77 | 40,142,545.84 | 156,893,447.28 |
| 2. Increase | 4,985,986.95 | 2,366,440.57 | 4,230,672.58 | 11,583,100.10 |
| (1) Provision | 4,985,986.95 | 2,366,440.57 | 4,230,672.58 | 11,583,100.10 |
| 3. Decrease | 64,798.86 | 64,798.86 | ||
| (1) Disposal | 64,798.86 | 64,798.86 | ||
| 4. Effect of changes in exchange rate | 50,415.00 | 15,064.94 | 65,479.94 | |
| 5. Closing balance | 93,435,066.62 | 30,718,677.34 | 44,323,484.50 | 168,477,228.46 |
| III. Book Value | ||||
| 1. Closing book value | 381,465,481.26 | 16,610,133.98 | 47,548,042.92 | 445,623,658.16 |
| 2. Opening book value | 386,350,949.86 | 18,976,574.55 | 46,873,338.98 | 452,200,863.39 |
The percentage of intangible assets generated from in-house R&D in intangible assets balance is 0.00%.
16. Deferred income tax assets/deferred income tax liabilities
(1) Un-offset deferred income tax assets
Unit: RMB
| Item | Closing balance | Opening balance | ||
| Deductible temporary difference | Deferred income tax assets | Deductible temporary difference | Deferred income tax assets | |
| Impairment provision of assets | 116,058,220.47 | 24,889,181.85 | 140,835,930.67 | 31,223,473.17 |
| Profits not realized by internal transaction | 68,226,299.21 | 17,055,508.42 | 65,189,056.55 | 16,265,944.20 |
| Deductible losses | 9,974,784.69 | 2,194,452.63 | 11,483,414.26 | 2,526,351.14 |
| Accrued expenses | 1,403,277,066.18 | 346,328,975.43 | 1,387,553,412.35 | 342,490,567.25 |
| Accrued salary | 33,182,654.84 | 8,295,663.71 | 55,679,676.14 | 13,919,919.04 |
| Estimated liabilities | 12,172,333.27 | 1,928,083.32 | 12,737,298.24 | 1,910,594.74 |
| Share-based payment | 21,404,889.90 | 5,351,222.16 | ||
| Book-tax difference for depreciation of fixed assets | 758,178.56 | 189,544.64 | ||
| Expected returns | 6,406,873.58 | 1,601,718.39 | 7,251,899.92 | 1,812,974.98 |
| The impact of the new lease standards | 3,391,336.38 | 832,286.64 | 2,601,983.12 | 635,171.05 |
| Total | 1,674,094,458.52 | 408,477,092.55 | 1,684,090,849.81 | 410,974,540.21 |
(2) Deferred income tax assets or liabilities presented in the net amount after offsetting
Unit: RMB
| Item | Deferred income tax assets and liabilities at the end of the debt period | Closing balance of deferred income tax assets or liabilities after offsetting | Deferred income tax assets and liabilities at the end of the debt period | Opening balance of deferred income tax assets or liabilities after offsetting |
| Deferred income tax assets | 408,477,092.55 | 410,974,540.21 |
(3) Detail about unrecognized deferred income tax assets
Unit: RMB
| Item | Closing balance | Opening balance |
| Deductible temporary difference | 21,242,259.25 | 9,242,482.90 |
| Deductible losses | 25,452,407.22 | 22,983,929.59 |
| Total | 46,694,666.47 | 32,226,412.49 |
(4) Deductible losses of unconfirmed deferred income tax assets shall expire in the following years
Unit: RMB
| Year | Closing balance | Opening balance | Remarks |
| 2024 | 8,287,689.09 | 8,287,689.09 | |
| 2025 | 6,945,189.33 | 6,945,189.33 | |
| 2026 | 7,751,051.17 | 7,751,051.17 | |
| 2027 | 2,468,477.63 | ||
| Total | 25,452,407.22 | 22,983,929.59 |
17. Notes payable
Unit: RMB
| Category | Closing balance | Opening balance |
| Bank acceptance | 1,578,200,000.00 | 500,250,000.00 |
| Total | 1,578,200,000.00 | 500,250,000.00 |
Other remarks:
The closing balance are all notes payable due within one year, and total notes payable due and unpaid at the end of the period are RMB0.
18. Accounts payable
(1) Details
Unit: RMB
| Item | Closing balance | Opening balance |
| Goods payment | 1,072,983,585.28 | 2,385,533,206.14 |
| Equipment and engineering funds | 26,481,386.78 | 74,164,020.84 |
| Expenses payment | 1,455,491,798.89 | 1,310,003,599.52 |
| Total | 2,554,956,770.95 | 3,769,700,826.50 |
Other remarks:
As at June 30, 2022, the Group had no significant accounts payable with an age of more than one year.
19. Contract liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Advances on sales | 470,023,043.75 | 893,741,863.21 |
| Total | 470,023,043.75 | 893,741,863.21 |
Other remarks:
The contract liabilities mainly involve the advance receipts received by Supor from customers pursuant to sales contracts, which arecollected in accordance with the contractual agreements. Revenue related to these contract will be recognized when Supor has fulfilledits performance obligations.The amount with major changes in its book value during the reporting period and its reasons
Unit: RMB
| Item | Variation Amount | Reason of change |
| Advances on sales | -893,741,863.21 | Include revenue recognized for amounts in the opening book value of contract liabilities |
| Advances on sales | 470,023,043.75 | Increase due to cash received (excluding amounts recognized as revenue in the current year) |
| Total | -423,718,819.46 | - |
20. Employee remunerations payable
(1) Details
Unit: RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| I. Short-term Employee Remuneration | 303,575,560.46 | 825,452,544.85 | 915,107,361.74 | 213,920,743.57 |
| II. Post-employment Benefits - Defined Contribution Plan | 9,073,751.55 | 48,356,790.71 | 52,241,223.38 | 5,189,318.88 |
| III. Termination Benefit | 9,043,641.87 | 797,934.15 | 9,216,701.11 | 624,874.91 |
| Total | 321,692,953.88 | 874,607,269.71 | 976,565,286.23 | 219,734,937.36 |
(2) Details of short-term employee remuneration
Unit: RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| 1. Wage, bonus, allowance and subsidy | 261,402,348.07 | 736,041,268.48 | 830,527,590.87 | 166,916,025.68 |
| 2. Employee services and benefits | 5,591,592.20 | 35,558,044.55 | 32,960,268.70 | 8,189,368.05 |
| 3. Social insurance charges | 3,795,053.66 | 24,823,608.25 | 24,777,538.57 | 3,841,123.34 |
| Work-related injury insurance | 231,126.92 | 1,608,313.06 | 1,630,730.61 | 208,709.37 |
| Medical and maternity insurance | 3,563,926.74 | 23,215,295.19 | 23,146,807.96 | 3,632,413.97 |
| 4. Housing provident fund | 19,089,114.47 | 18,996,260.71 | 92,853.76 | |
| 5. Labor union expenditure and employees' educational fund | 32,786,566.53 | 9,940,509.10 | 7,845,702.89 | 34,881,372.74 |
| Total | 303,575,560.46 | 825,452,544.85 | 915,107,361.74 | 213,920,743.57 |
(3) Details of defined contribution plan
Unit: RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| 1. Basic pension insurance | 8,917,574.02 | 46,899,498.61 | 50,813,050.78 | 5,004,021.85 |
| 2. Unemployment insurance premium | 156,177.53 | 1,457,292.10 | 1,428,172.60 | 185,297.03 |
| Total | 9,073,751.55 | 48,356,790.71 | 52,241,223.38 | 5,189,318.88 |
(4) Termination benefit
The amount of the termination benefit paid by Supor for termination of employment during the reporting period was RMB 9,216,701.11(the same period in 2021: RMB 18,745,333.69) and the amount outstanding at the end of the period payable was RMB 624,874.91(December 31, 2021: RMB 9,043,641.87).
21. Taxes payable
Unit: RMB
| Item | Closing balance | Opening balance |
| VAT | 32,550,273.14 | 16,872,131.15 |
| Enterprise income tax | 179,190,271.97 | 211,061,366.37 |
| Individual income tax | 2,450,288.11 | 3,008,686.26 |
| Urban maintenance and construction tax | 4,066,598.66 | 2,435,989.79 |
| Housing property tax | 5,115,538.26 | 8,277,905.43 |
| Land use tax | 3,477,015.94 | 6,675,898.84 |
| Stamp tax | 1,240,799.60 | 4,014,935.73 |
| Education surcharge | 1,747,773.15 | 994,165.50 |
| Local education surcharge | 1,175,689.21 | 753,712.48 |
| Total | 231,014,248.04 | 254,094,791.55 |
22. Other payables
Unit: RMB
| Item | Closing balance | Opening balance |
| Other payables | 99,060,772.22 | 110,605,272.21 |
| Total | 99,060,772.22 | 110,605,272.21 |
(1) Other payables
1) Listing by nature
Unit: RMB
| Item | Closing balance | Opening balance |
| Deposit as security | 73,725,163.98 | 72,599,903.25 |
| Temporary receipts payable | 13,019,095.33 | 25,902,507.85 |
| Others | 12,316,512.91 | 12,102,861.11 |
| Total | 99,060,772.22 | 110,605,272.21 |
23. Non-current liabilities due within one year
Unit: RMB
| Item | Closing balance | Opening balance |
| Lease obligation due within one year | 34,437,379.21 | 29,191,343.78 |
| Total | 34,437,379.21 | 29,191,343.78 |
24. Other current liabilities
Unit: RMB
| Item | Closing balance | Opening balance |
| Refund payable | 17,235,958.92 | 20,629,048.91 |
| Endorsed bank acceptances that are not derecognized | 32,678,311.69 | 53,979,357.24 |
| Output tax to be written-off | 60,783,657.65 | 115,201,977.22 |
| Total | 110,697,928.26 | 189,810,383.37 |
25. Lease obligation
Unit: RMB
| Item | Closing balance | Opening balance |
| Long-term lease obligation | 187,083,421.05 | 186,611,554.59 |
| Minus: Lease obligation due within one year | -34,437,379.21 | -29,191,343.78 |
| Total | 152,646,041.84 | 157,420,210.81 |
Other remarks:
Supor leased employee dormitories and temporary warehouses for a period of one year, which are short-term leases. Supor acted onthese leases without recognizing right-of-use assets and lease obligation.
26. Long-term payable employee remuneration
(1) Long-term employee remuneration payable
Unit: RMB
| Item | Closing balance | Opening balance |
| II. Termination Benefit | 1,626,823.60 | 1,903,631.69 |
| Total | 1,626,823.60 | 1,903,631.69 |
27. Estimated liabilities
Unit: RMB
| Item | Closing balance | Opening balance | Reasons for the balance |
| Pending lawsuit | 11,150,000.00 | 11,150,000.00 | For details, please refer to Note 14. Commitments and contingencies |
| Financial guarantee contract | 1,022,333.27 | 1,587,298.24 | For details, please refer to Note 14. Commitments and contingencies |
| Total | 12,172,333.27 | 12,737,298.24 |
28. Share capital
Unit: RMB
| Opening balance | Movements (+, -) | Closing balance | |||||
| New shares | Shares bonus | Converted capital | Others | Subtotal | |||
| Total shares | 808,678,476.00 | -24,000.00 | -24,000.00 | 808,654,476.00 |
Other remarks:
The share capital of the current period is reduced by RMB 24,000.00, which corresponds to the repurchase and write-off of the24,000 restricted stocks from the dismissed equity incentive objects at the price of RMB 1 per share and results in a reduction of RMB24,000.00 in share capital.
29. Capital reserves
Unit: RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| Capital premium (share capital premium) | 52,997,061.77 | 76,150,757.24 | 74,950,397.25 | 54,197,421.76 |
| Other capital reserve | 69,973,278.50 | 21,404,889.90 | 91,378,168.40 | |
| Total | 122,970,340.27 | 97,555,647.14 | 74,950,397.25 | 145,575,590.16 |
Other notes (including increase and decrease in current period and variation reason):
1) The increase in capital premium (share capital premium) of RMB 76,150,757.24 for the year was due to the amount of RMB76,150,757.24 set aside for restricted stock repurchase from undistributed profits for the year;
2) The decrease of capital premium (share capital premium) by RMB 74,950,397.25 was due to the grant of r restricted stocks to theincentive objects, which was partially offset by capital reserve - share premium;
3) The increase in other capital reserve for the year of RMB 21,404,889.90 was due to the recognition of RMB 21,404,889.90 of equity-settled share-based payment expenses in capital reserve (other capital reserve) during the year, as described in Note 13. Description ofShare-based Payment, to these financial statements.
30. Treasury share
Unit: RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| Treasury share | 76,159,897.25 | 58,185,415.23 | 74,974,397.25 | 59,370,915.23 |
| Total | 76,159,897.25 | 58,185,415.23 | 74,974,397.25 | 59,370,915.23 |
Other notes (including increase and decrease in current period and variation reason):
The Proposal on Public Shares Repurchase Plan was reviewed and approved by the 12th Session of the Seventh Board of Directorsand the General Meeting of Shareholders 2021. The aim of this Stock Repurchase Plan is to reduce registered capital fund of theCompany and to implement equity incentive. The increase for the year was due to the repurchase of 1,095,000 shares of the Companyfrom the parallel market by way of centralized competitive trading for a total amount of RMB 58,179,536.09 and a repurchase handlingfee of RMB 5,879.14 during the reporting period.
2) The decrease of treasury shares by RMB 74,974,397.25 for the year. ① The Proposal of Granting Restricted Stocks To IncentiveObject was considered and approved at the 11th Session of the Seventh Board of Directors of the Company in 2022, and the grantingof restricted stocks to incentive objects decreased treasury shares by RMB 74,950,397.25 for the year; ② The 12th Session of theSeventh Board of Directors of the Company in 2022 resolved that six incentive objects of the Company no longer meet the incentiveconditions due to their departure, and repurchased and cancelled a total of 24,000 restricted stocks at a price of RMB 1/share, decreasingthe repurchase obligation by RMB 24,000.00 accordingly.
31. Other comprehensive income
Unit: RMB
| Item | Opening balance | Amount incurred during this period | Closing balance | |||||
| Current period cumulative before income tax | Minus: OCI carried forward transferred to profit or loss | Minus: OCI carried forward transferred to retained earning | Minus: Income tax expense | Attributable to parent company | Attributable to non-controlling interest | |||
| II. Other Comprehensive Incomes To Be Reclassified into the Profit and Loss | -41,522,541.60 | 11,179,909.75 | 11,100,770.29 | 79,139.46 | -30,421,771.31 | |||
| Conversion difference of foreign currency financial statements | -41,522,541.60 | 11,179,909.75 | 11,100,770.29 | 79,139.46 | -30,421,771.31 | |||
| Total other comprehensive income | -41,522,541.60 | 11,179,909.75 | 11,100,770.29 | 79,139.46 | -30,421,771.31 | |||
32. Surplus reserves
Unit: RMB
| Item | Opening balance | Increase | Decrease | Closing balance |
| Statutory surplus reserve | 356,924,811.32 | 356,924,811.32 | ||
| Total | 356,924,811.32 | 356,924,811.32 |
33. Undistributed profits
Unit: RMB
| Item | Current period | Prior period |
| Undistributed profits at period beginning after adjustment | 6,451,748,564.12 | 6,202,587,444.38 |
| Plus: Net profit belonging to the owners of parent company in this period | 932,849,164.03 | 865,590,446.89 |
| Minus: Ordinary share dividends payable | 1,559,494,958.68 | 1,048,601,714.34 |
| Restricted stock grant | 76,150,757.24 | |
| Undistributed profits at the end of the period | 5,748,952,012.23 | 6,019,576,176.93 |
Adjustment of undistributed profits at period beginning:
1). Due to retroactive adjustment of Accounting Standards for Business Enterprises and relevant new regulations, Undistributed profitsat period beginning was changed by RMB 0.
2). Due to change of accounting policies, Undistributed profits at period beginning was changed by RMB 0.
3). Due to rectification of important accounting errors, undistributed profit at period beginning was changed by RMB 0.
4). Due to change of merger scope resulted from same control, undistributed profit at period beginning was changed by RMB 0.
5). Due to other adjustment, undistributed profit at period beginning was changed by RMB 0.
34. Operating income and operating cost
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during last period | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 10,256,439,431.57 | 7,622,713,387.19 | 10,381,939,743.02 | 7,695,160,010.24 |
| Other business | 67,540,313.25 | 47,736,567.42 | 51,936,150.60 | 30,691,447.73 |
| Total | 10,323,979,744.82 | 7,670,449,954.61 | 10,433,875,893.62 | 7,725,851,457.97 |
Information related to revenue:
Unit: RMB
| Contract Classification | Total |
| Commodit type | |
| Including: | |
| Cooking utensils and utensils | 3,066,665,527.99 |
| Cooking appliances | 4,588,882,638.90 |
| Food cooking appliances | 1,568,135,937.20 |
| Other household electric appliances | 1,100,295,640.73 |
| Classified by business area | |
| Including: | |
| Domestic | 7,457,451,182.53 |
| Foreign | 2,866,528,562.29 |
| Classification by time of commodity transfer | |
| Including: | |
| Revenue recognized at a certain time point | 10,323,979,744.82 |
Information related to performance obligations:
NoneInformation related to the transaction price allocated to the remaining performance obligations:
The amount of revenue corresponding to performance obligations that have been contracted but not yet performed or not yet completedat the end of the reporting period is RMB 470,023,043.75, of which RMB 470,023,043.75 is expected to be recognized as revenue infiscal 2022.
35. Taxes and surcharges
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during last period |
| Urban maintenance and construction tax | 34,278,449.74 | 23,543,464.32 |
| Education surcharge | 14,678,925.15 | 10,133,084.03 |
| Housing property tax | 6,514,302.51 | 5,430,607.45 |
| Land use tax | -1,684,552.99 | 443,100.90 |
| Vehicle and vessel use tax | 27,176.40 | 31,696.40 |
| Stamp tax | 3,852,928.84 | 4,432,175.02 |
| Local education surcharge | 9,785,950.09 | 6,787,694.21 |
| Environmental protection tax | 46,908.98 | 31,377.05 |
| Total | 67,500,088.72 | 50,833,199.38 |
Other remarks:
See Note 6. Taxes, for details of the accrual criteria for each tax and surcharge.
36. Sales expenses
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during last period |
| Advertising, sales promotion, and special gift expenses | 793,740,249.03 | 630,832,596.38 |
| Transportation expenses | 300,560,031.00 | |
| Employee remuneration | 200,599,623.31 | 190,110,925.64 |
| Office and business traveling expenses | 58,158,944.19 | 56,702,384.07 |
| Others | 26,086,187.57 | 17,337,767.73 |
| Total | 1,078,585,004.10 | 1,195,543,704.82 |
37. Administrative expense
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during last period |
| Employee remuneration | 109,519,189.69 | 146,444,519.38 |
| Office, business travelling and depreciation and amortization expenses | 38,758,513.91 | 37,087,803.85 |
| Equity incentive costs | 21,404,889.90 | 5,634,982.68 |
| Others | 18,975,433.26 | 24,847,432.15 |
| Total | 188,658,026.76 | 214,014,738.06 |
38. R&D expenses
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during last period |
| Employee remuneration | 97,605,516.41 | 89,105,947.27 |
| Trial production experiment cost and consumption expenditure | 45,231,026.76 | 60,155,343.04 |
| New product design cost | 21,083,513.80 | 14,765,977.41 |
| Patent and external institutional fees | 20,485,620.53 | 20,576,192.20 |
| Others | 10,076,125.92 | 7,886,964.42 |
| Total | 194,481,803.42 | 192,490,424.34 |
39. Financial expenses
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during last period |
| Interest revenue | -32,112,351.33 | -14,007,637.46 |
| Gain or loss on foreign exchange | -16,222,180.30 | 3,200,629.44 |
| Handling fees and others | 2,708,735.34 | 1,070,822.30 |
| Interest expense | 4,810,441.61 | 5,136,071.01 |
| Total | -40,815,354.68 | -4,600,114.71 |
40. Other incomes
(1) Classification of other incomes
Unit: RMB
| Source of other incomes | Amount incurred during this period | Amount incurred during last period |
| Government subsidies concerning daily activities | 39,595,641.01 | 32,166,988.75 |
| Refund of individual income tax handling fee | 1,092,207.14 | 922,422.16 |
| Total | 40,687,848.15 | 33,089,410.91 |
(2) Government subsidies concerning daily activities
Unit: RMB
| Subsidy item | Amount incurred during this period | Amount incurred during last period | Related to assets/income |
| Project subsidy | 11,916,692.79 | 17,184,332.70 | Related to benefits |
| Government reward | 9,700,000.00 | 7,820,000.00 | Related to benefits |
| Tax returns | 17,978,948.22 | 7,162,656.05 | Related to benefits |
| Total | 39,595,641.01 | 32,166,988.75 |
41. Investment incomes
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during last period |
| Long-term equity investment income under the equity method | -457,219.85 | 1,025,583.40 |
| Investment income from disposal of transactional financial asset | 2,801,323.05 | |
| Interest for term deposit | 29,159,105.64 | 51,746,405.48 |
| Investment income of debt investment during the holding period | 6,713,635.48 | |
| Total | 38,216,844.32 | 52,771,988.88 |
42. Gains from changes in fair value
Unit: RMB
| Source of gains from changes in fair value | Amount incurred during this period | Amount incurred during last period |
| Variation in fair value of financial products | 550,529.85 | 1,005,713.48 |
| Total | 550,529.85 | 1,005,713.48 |
43. Credit impairment losses
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during last period |
| Loss on bad debts of other receivables | -473,075.27 | 120,275.04 |
| Accounts receivable | 25,130,551.51 | -20,867,807.16 |
| Notes receivable | 171,849.93 | |
| Financial guarantee contract | 564,964.97 | |
| Total | 25,222,441.21 | -20,575,682.19 |
44. Asset impairment loss
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during last period |
| I. Loss from Inventory Depreciation and Loss from Impairment of Contract Performance Cost | -16,045,044.53 | -2,845,405.73 |
| II. Fixed asset impairment loss | -5,489,685.00 | |
| Total | -16,045,044.53 | -8,335,090.73 |
45. Assets disposal income
Unit: RMB
| Source of assets disposal income | Amount incurred during this period | Amount incurred during last period |
| Profits for non-current assets disposal Profits of non-current assets (loss "-") | -498,368.94 | -540,385.03 |
| Gain on disposal of right-of-use asset | 304,915.84 | |
| Total | -193,453.10 | -540,385.03 |
46. Non-operating income
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during last period | Amount included into non-recurring profit or loss |
| Gains from disposal of non-current assets | 125,962.34 | 304,679.19 | 125,962.34 |
| Including: Profits for fixed assets disposal | 125,962.34 | 304,679.19 | 125,962.34 |
| Default fine revenue | 937,976.52 | 1,350,795.41 | 937,976.52 |
| Others | 1,224,315.17 | 375,472.94 | 1,224,315.17 |
| Total | 2,288,254.03 | 2,030,947.54 | 2,288,254.03 |
47. Non-operating expenses
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during last period | Amount included into non-recurring profit or loss |
| Donation expenditures | 1,120,000.02 | 1,179,209.52 | 1,120,000.02 |
| Losses from disposal of non-current assets | 245,051.52 | 254,975.30 | 245,051.52 |
| Including: Fixed asset disposal loss | 245,051.52 | 254,975.30 | 245,051.52 |
| Others | 1,531,257.29 | 3,205,689.17 | 1,531,257.29 |
| Total | 2,896,308.83 | 4,639,873.99 | 2,896,308.83 |
48. Income tax expenses
(1) Details
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during last period |
| Current income tax expenses | 316,759,106.44 | 270,175,426.88 |
| Deferred income tax expenses | 2,497,447.66 | -19,690,158.83 |
| Total | 319,256,554.10 | 250,485,268.05 |
(2) Reconciliation of accounting profit to income tax expenses
Unit: RMB
| Item | Amount incurred during this period |
| Total profit | 1,252,951,332.99 |
| Income tax expenses based on statutory/applicable tax rate | 313,237,833.25 |
| Effect of different tax rate applicable to subsidiaries | -2,131,449.66 |
| Effect of prior income tax reconciliation | 5,640,101.11 |
| Effect of non-taxable revenue | 114,304.96 |
| Effect of deductible temporary differences or deductible losses on unrecognized deferred income tax assets in the current period | 2,395,764.44 |
| Income tax expense | 319,256,554.10 |
49. Other comprehensive income
For details, please refer to Note 31.
50. Items of cash flow statement
(1) Other cash received related to operating activities
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during last period |
| Receipt of government subsidies | 22,708,899.93 | 32,166,988.75 |
| Receipt of deposit, security and staff reserve fund loan | 10,386,022.99 | 25,374,312.95 |
| Interest revenue | 22,572,015.53 | 11,962,551.57 |
| Others | 10,594,834.36 | 6,883,280.68 |
| Total | 66,261,772.81 | 76,387,133.95 |
(2) Other cash payments related to operating activities
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during last period |
| Cash payment for sales expense | 899,665,674.62 | 783,583,395.10 |
| Cash payment for administrative expenses | 60,907,658.14 | 82,114,394.80 |
| Cash payment for R&D expenses | 109,717,018.05 | 103,780,795.72 |
| Donations payment | 673,091.00 | 908,628.40 |
| Deposit security payment for Note payable | 434,032,922.14 |
| Other payments | 5,512,875.25 | 5,685,204.38 |
| Total | 1,076,476,317.06 | 1,410,105,340.54 |
(3) Other cash receipts related to investing activities
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during last period |
| Cash receipt from recovery of financial products, principal and interest of term deposit | 1,380,000,000.00 | 1,015,003,017.64 |
| Total | 1,380,000,000.00 | 1,015,003,017.64 |
(4) Other cash payments related to investing activities
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during last period |
| Cash payment for financial products and term deposit | 550,000,000.00 | 546,000,000.00 |
| Total | 550,000,000.00 | 546,000,000.00 |
(5) Other cash receipts related to financing activities
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during last period |
| Bank loan, etc. | 892,000.00 | |
| Total | 892,000.00 |
(6) Other cash payments related to financing activities
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during last period |
| Repurchased stock and handling fee | 58,185,415.23 | 257,776,914.61 |
| Cash paid for repayment of lease obligation principal and interest | 21,490,157.99 | |
| Total | 79,675,573.22 | 257,776,914.61 |
51. Supplement information to the cash flow statement
(1) Supplement information to the cash flow statement
Unit: RMB
| Supplement information | Amount of this period | Amount of last period |
| 1. Reconciliation of net profit to cash flow from operating activities: |
| Net profit | 933,694,778.89 | 864,064,244.58 |
| Plus: Impairment provision of assets | 16,045,044.53 | 8,335,090.73 |
| Credit impairment loss | -25,222,441.21 | 20,575,682.19 |
| Depreciation of fixed assets, oil and gas assets, productive biological assets | 62,262,292.80 | 64,637,888.19 |
| Depreciation of right-of-use assets | 22,473,391.88 | 22,581,086.79 |
| Amortization of intangible assets | 11,583,100.10 | 10,682,415.26 |
| Amortization of long-term unamortized expenses | 309,232.79 | |
| Loss on disposal of fixed assets, intangible assets and other long-term assets ("-" for gains) | 193,453.10 | 540,385.03 |
| Fixed assets retirement loss ("-" for gains) | 119,089.18 | 461,304.25 |
| Loss from fair value changes ("-" for earnings) | -550,529.85 | -1,005,713.48 |
| Financial expenses ("-" for gains) | -16,222,180.30 | 8,335,355.17 |
| Investments losses ("-" for gains) | -38,216,844.32 | -52,771,988.88 |
| Decrease of deferred income tax assets ("-" for increase) | 2,497,447.66 | -19,533,087.43 |
| Increase of deferred income tax liabilities ("-" for decrease) | ||
| Decrease in inventories ("-" for increase) | 799,978,326.78 | 439,495,557.02 |
| Decrease in operating receivables ("-" for increase) | 510,296,788.15 | -451,477,284.90 |
| Increase in operating payable ("-" for decrease) | -933,306,325.73 | -180,766,481.72 |
| Others | -36,780,525.33 | -434,032,922.14 |
| Net cash flows from operating activities | 1,308,844,866.33 | 300,430,763.45 |
| 2. Significant investing and financing activities not related to cash receipts and payments: | ||
| Conversion of debt into capital | ||
| Convertible corporate bonds due within one year | ||
| Fixed assets under financing lease | ||
| 3. Net changes in cash and cash equivalents: | ||
| Closing balance of cash | 3,008,602,558.47 | 1,003,957,665.61 |
| Minus: Opening balance of cash | 2,443,731,679.06 | 1,655,785,919.04 |
| Plus: closing balance of cash equivalents | ||
| Minus: opening balance of cash equivalents | ||
| Net increase in cash and cash equivalents | 564,870,879.41 | -651,828,253.43 |
(2) Cash and cash equivalents
Unit: RMB
| Item | Closing balance | Opening balance |
| I. Cash | 3,008,602,558.47 | 2,443,731,679.06 |
| Including: Cash on hand | 45,511.13 | 71,122.80 |
| Cash in bank on demand for payment | 2,981,886,179.44 | 2,420,300,342.03 |
| Other monetary capital on demand for payment | 26,670,867.90 | 23,360,214.23 |
| III. Balance of Cash and Cash Equivalents at the End of the Period | 3,008,602,558.47 | 2,443,731,679.06 |
52. Assets with title or use right restrictions
Unit: RMB
| Item | Closing book value | Reasons for restrictions |
| Monetary capital | 58,000,000.00 | Deposit security for advance payment financing |
| Monetary capital | 412,530,000.00 | Security for bank acceptance |
| Monetary capital | 550,000.00 | E-commerce platform security and frozen funds |
| Monetary capital | 263,468.43 | Cancellation of branch bank account frozen amount |
| Total | 471,343,468.43 |
53. Foreign currency monetary items
(1) Foreign currency monetary item
Unit: RMB
| Item | Closing balance in foreign currencies | Conversion rate | Closing balance of converted RMB |
| Monetary capital | |||
| Including: USD | 46,346,334.49 | 6.7114 | 311,048,789.30 |
| EUR | 3,604,059.21 | 7.0084 | 25,258,688.57 |
| GBP | 29.80 | 8.1365 | 242.47 |
| VND | 6,062,525,682.50 | 0.000288352 | 1,748,141.41 |
| SGD | 88,724.39 | 4.8170 | 427,385.39 |
| IDR | 10,022,348,361.00 | 0.000451 | 4,520,079.11 |
| Accounts receivable | |||
| Including: USD | 45,120,212.77 | 6.7114 | 302,819,795.98 |
| VND | 30,545,065,505.50 | 0.000288352 | 8,807,730.73 |
| IDR | 2,486,517,195.00 | 0.000451 | 1,121,419.25 |
| Accounts payable |
| Including: USD | 1,785,999.08 | 6.7114 | 11,986,554.23 |
| GBP | 1,007,800.55 | 8.1365 | 8,199,969.18 |
| EUR | 620.00 | 7.0084 | 4,345.21 |
| VND | 51,832,208,886.84 | 0.000288352 | 14,945,921.10 |
| SGD | 115,375.00 | 4.8170 | 555,761.38 |
| IDR | 1,258,157,747.28 | 0.000451 | 567,429.14 |
VIII. Change on Merger Scope
1. Others
There was no change on merger scope in the current period.
IX. Equity in Other Entities
1. Equity in subsidiaries
(1) Structure of enterprise Group
| The subsidiary name | Main operating place | Place of registration | Business nature | Shareholding ratio | Acquisition method | |||
| Direct | Indirect | |||||||
| Zhejiang Supor Electrical Appliance Manufacturing Co., Ltd. [Note 1] | Hangzhou | Hangzhou | Manufacturing industry | 100.00% | Establishment | |||
| Zhejiang Shaoxing Supor Domestic Electrical Appliances Co., Ltd. [Note 1] | Shaoxing | Shaoxing | Manufacturing industry | 100.00% | Establishment | |||
| Supor (Vietnam) Co., Ltd [Note 1] | Vietnam | Vietnam | Manufacturing industry | 100.00% | Establishment | |||
| Wuhan Supor Recycling Co., Ltd [Note 1] | Wuhan | Wuhan | Commerce | 100.00% | Establishment | |||
| Wuhan Supor Cookware Co., Ltd [Note 1] & [Note 2] | Wuhan | Wuhan | Manufacturing industry | 25.00% | 75.00% | Establishment | ||
| Hangzhou Omegna Commercial Trade Co., Ltd [Note 1] | Hangzhou | Hangzhou | Commerce | 100.00% | Establishment | |||
| Shanghai Supor Cookware Marketing Co., Ltd [Note 1] | Shanghai | Shanghai | Commerce | 100.00% | Establishment | |||
| Wuhan Supor Pressure Cooker Co., Ltd [Note 1] | Wuhan | Wuhan | Manufacturing industry | 100.00% | Enterprise merger under the same control | |||
| Zhejiang Supor Plastic & Rubber Co., Ltd [Note 1] | Yuhuan | Yuhuan | Manufacturing industry | 100.00% | Enterprise merger under the same control | |||
| Yuhuan Supor Cookware Marketing Co., Ltd [Note 1] | Yuhuan | Yuhuan | Commerce | 100.00% | Enterprise merger not under the same control | |||
| SEADA [Note 1] | Singapore | Singapore | Commerce | 51.00% | Enterprise merger under the same control | |||
| AFS Vietnam Management Co., Ltd [Note 1] [Note 3] | Vietnam | Vietnam | Commerce | 100.00% | Enterprise merger under the same | |||
| control | ||||||
| WMF (Shanghai) Co., Ltd [Note 1] | Shanghai | Shanghai | Manufacturing industry | 100.00% | Establishment | |
| Zhejiang WMF Housewares Co., Ltd [Note 1] | Yuhuan | Yuhuan | Manufacturing industry | 100.00% | Establishment | |
| Zhejiang Shaoxing Supor Housewares Co., Ltd. [Note 1] | Shaoxing | Shaoxing | Manufacturing industry | 100.00% | Establishment | |
| Shanghai SEB Electrical Appliances Co., Ltd [Note 1] | Shanghai | Shanghai | Manufacturing industry | 100.00% | Enterprise merger under the same control | |
| Zhejiang Supor Large Kitchen Appliance Co., Ltd [Note 1] | Shaoxing | Shaoxing | Manufacturing industry | 100.00% | Establishment | |
| PT GROUPE SEB INDONESIA MSD [Note 4] | Indonesia | Indonesia | Commerce | 66.67% | Establishment | |
| Zhejiang Supor Water Heater Co., Ltd. [Note 1] [Note 5] | Shaoxing | Shaoxing | Manufacturing industry | 52.00% | Establishment | |
| Hainan Supor E-commerce Co., Ltd. [Note 1] [Note 6] | Hainan | Hainan | Commerce | 100.00% | Establishment | |
| Hainan Tefal Trade Co., Ltd. [Note 1] [Note 6] | Hainan | Hainan | Commerce | 100.00% | Establishment |
Description that the shareholding ratio in the subsidiary is different from the voting right proportion:
Note 1: Hereinafter referred to as Zhejiang Supor Electrical, Shaoxing Supor, Wuhan Recycling, Wuhan Cookware, Omegna,Shanghai Marketing, Wuhan PC, P&R, Yuhuan Sales Company, SEADA, AFS, Shanghai WMF, Zhejiang WMF, Shaoxing SuporHousewares, Shanghai SEB, Supor kitchen & electric appliance, Supor Water Heater, Hainan Supor E-commerce and Hainan TefalTrade.
Note 2: The Company is subsidiary of Wuhan Supor Pressure Cooker Co., Ltd.; of which, Wuhan Supor Pressure Cooker Co.,Ltd holds 75% shares and the Company holds 25% shares.
Note 3: The Company holds 51% of the equity of SEADA, and AFS is a 100% owned subsidiary of SEADA.
Note 4: PT GROUPE SEB INDONESIA MSD was established jointly by SEADA, a subsidiary of the Company and the thirdparty PT MULTIFORTUNA in Indonesia this year. SEADA holds 66.67% shares and PT MULTIFORTUNA holds 33.33% shares.
Note 5: Zhejiang Supor Water Heater Co., Ltd. is jointly invested and established by the Company and Supor Group Co., Ltd.The Company holds 52% shares and Supor Group Co., Ltd holds 48% shares.
Note 6: Hainan Supor E-commerce and Hainan Tefal Trade are 100% owned subsidiaries of Zhejiang Supor Electrical. Endingon the disclosure date of this report, Hainan Supor Technology Co., Ltd. has changed new company name of Hainan Tefal Trade Co.,Ltd. and above registration change was completed on July 26, 2022.
(2) Significant non-wholly-owned subsidiaries
Unit: RMB
| The subsidiary name | Holding proportion of non-controlling interest | Profit or loss attributable to non-controlling interest | Dividend declared to non-controlling interest | Balance of minority shareholders' equities at the end of the period |
| SEADA | 49.00% | -88,014.04 | 6,974,435.97 | |
| AFS | 49.00% | 78,122.63 | 25,101.14 | |
| GSIM | 33.33% | 461,416.16 | 2,190,774.85 | |
| Supor Water Heater | 48.00% | 394,090.11 | 27,402,536.42 |
(3) Main financial information of significant non-wholly-owned subsidiaries
Unit: RMB
| The subsidiary name | Closing balance | Opening balance | ||||||||||
| Current assets | Non-current assets | Total assets | Current liabilities: | Non-current liabilities | Total liabilities | Current assets | Non-current assets | Total assets | Current liabilities: | Non-current liabilities | Total liabilities | |
| SEADA | 3,528,626.69 | 7,852,586.71 | 11,381,213.39 | 7,949,522.64 | 7,949,522.64 | 2,201,136.53 | 7,691,059.63 | 9,892,196.16 | 7,407,010.28 | 7,407,010.28 | ||
| AFS | 3,024,192.95 | 33,729.20 | 3,057,922.15 | 740,565.64 | 740,565.64 | 3,972,561.59 | 410,013.58 | 4,382,575.17 | 976,857.81 | 266,917.90 | 1,243,775.71 | |
| GSIM | 16,985,112.54 | 3,293,584.07 | 20,278,696.61 | 4,313,464.11 | 577,114.77 | 4,890,578.89 | 16,835,657.30 | 3,754,654.59 | 20,590,311.89 | 5,525,709.41 | 487,900.80 | 6,013,610.21 |
| Supor Water Heater | 76,177,511.44 | 3,875,633.44 | 80,053,144.87 | 22,683,379.65 | 22,683,379.65 | 82,108,107.10 | 3,773,931.89 | 85,882,038.99 | 29,357,361.93 | 29,357,361.93 | ||
Unit: RMB
| The subsidiary name | Amount incurred during this period | Amount incurred during last period | ||||||
| Operating income | Net profit | Total comprehensive income | Cash flows from operating activities | Operating income | Net profit | Total comprehensive income | Cash flows from operating activities | |
| SEADA | 487,263.80 | 880,735.29 | 946,504.87 | 202,599.96 | 322,031.26 | -104,497.72 | -867,851.46 | 231,465.12 |
| AFS | 159,433.94 | 238,911.66 | 913,081.75 | 108,108.08 | 91,449.40 | -47,709.90 | ||
| GSIM | 7,834,711.92 | 699,115.39 | 811,416.04 | 699,146.18 | 6,762,711.58 | -2,047,878.29 | -1,548,286.82 | -2,902,272.80 |
| Supor Water Heater | 32,635,218.27 | 845,088.15 | 845,088.15 | -1,246,208.23 | 33,709,631.15 | -567,999.40 | -567,999.40 | -5,936,272.42 |
2. Equity in joint venture or associated enterprise
(1) Significant joint venture or associated enterprise
| Name of joint venture or associated enterprise | Main operating place | Place of registration | Business nature | Shareholding ratio | Accounting method for the investment in joint venture or associated enterprise | |
| Direct | Indirect | |||||
| Wuhan Anzai Cookware Co., Ltd. | Wuhan | Wuhan | Manufacturing industry | 30.00% | Equity method | |
(2) Main financial information of significant associated enterprises
Unit: RMB
| Closing balance/current period cumulative | Opening balance/amount incurred during last period | |
| Current assets | 121,253,241.05 | 146,447,108.80 |
| Non-current assets | 44,420,038.70 | 46,881,291.93 |
| Total assets | 165,673,279.75 | 193,328,400.73 |
| Current liabilities: | 23,686,164.65 | 49,304,509.03 |
| Non-current liabilities | 540,000.00 | 640,000.00 |
| Total liabilities | 24,226,164.65 | 49,944,509.03 |
| Attributable to shareholders' equities of the parent company | 141,447,115.10 | 143,383,891.70 |
| Proportionate share in net assets | 42,434,134.53 | 43,015,167.51 |
| --Goodwill | 22,585,444.13 | 22,585,444.13 |
| Book value of investments in associated enterprises | 65,019,578.66 | 65,600,611.64 |
| Operating income | 107,194,897.86 | 123,513,682.51 |
| Net profit | -1,936,776.60 | 2,548,754.93 |
| Total comprehensive income | -1,936,776.60 | 2,548,754.93 |
X. Risks related to financial instruments(I) Risk management objectives and policiesSupor aims to seek the appropriate difference between risks and returns, minimize the negative impact of risks on Supor'soperating performance, and maximize the interests of shareholders and other equity investors. Based on such objectives, Supor's riskmanagement policies are established to identify and analyze the risks faced by Supor, to set appropriate risk limits and controls, and tomonitor risks and adherence to limits.
1. Market risk
(1) Foreign exchange risk
Foreign exchange risk refers to the risk of fluctuations in the fair value of financial instruments or future cash flows due tochanges in foreign exchange rate. Supor's foreign exchange risk relates mainly to foreign currency monetary assets and liabilities.When short-term imbalance occurred to foreign currency assets and liabilities, Supor may conduct foreign exchange hedge or tradeforeign currency at market exchange rate when necessary, in order to maintain the net risk exposure within an acceptable level.Please refer to notes to others - foreign currency monetary items for details in foreign currency financial assets and liabilities atthe end of the year.Sensitivity analysis:
Assuming that other risk variables other than the exchange rate remain unchanged, the change in the exchange rate of RMBagainst all foreign currencies on June 30of Supor will lead to the increase of shareholders' equities and net profit by 1%. The influenceis presented by converting it to RMB at the spot rate on the balance sheet day.
| Shareholders' equities | Net profit | |
| June 30, 2022 | ? | ? |
| USD | 4,619,175.06 | 4,619,175.06 |
| EUR | 189,407.58 | 189,407.58 |
| GBP | -61,497.95 | -61,497.95 |
| VND | -35,120.43 | -35,120.43 |
| SGD | -1,066.22 | -1,066.22 |
| IDR | 39,577.74 | 39,577.74 |
| Total | 4,750,475.78 | 4,750,475.78 |
| December 31, 2021 | ? | ? |
| USD | 3,757,640.60 | 3,757,640.60 |
| EUR | 395.31 | 395.31 |
| GBP | 2.17 | 2.17 |
| VND | -93,874.85 | -93,874.85 |
| SGD | -1,854.16 | -1,854.16 |
| IDR | 49,730.04 | 49,730.04 |
| Total | 3,712,039.11 | 3,712,039.11 |
(2) Interest risk - cash flow change risk
Interest risk refers to the risk of fluctuations in the fair value of financial instruments or future cash flows due to changes in marketinterest rate. As of June 30, 2022, Supor had no bank borrowings, and Supor's gross profit and shareholders' equities were notsignificantly affected by interest risk.
2. Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to dischargean obligation.
The monetary capital of Supor other than cash are mainly deposited in financial organizations with good credit, and entrustedfinancial products are issued by financial organizations with good credit. The management believes that there is no significant creditrisk and it is not expected to cause losses to Supor due to the other party's default.
The maximum credit risk exposure assumed by Supor is the book value of each financial asset in the balance sheet (includingderivative financial instruments). Supor has not provided any guarantee that could expose it to credit risk other than the financialguarantee set out in Note XIV. The exposure of the maximum credit risk assumed by the above financial guarantees on the balancesheet date has been disclosed in Note XIV.
Supor's credit risk is primarily attributable to receivables. In order to control such risks, Supor has taken the following measures:
(1) Receivables financing and notes receivable
Receivables financing and notes receivable of the Supor are mainly bank acceptance receivable. Supor conducts ongoingmonitoring on receivables, to avoid significant risks in bad debts.
(2) Accounts receivable
Supor only conducts business with credible and well-reputed third parties. According to the Supor's policies, credit evaluationsare performed on all customers to determine the credit limit and terms applicable to the customers. In addition, Supor conducts ongoingmonitoring on accounts receivable, to avoid significant risks in bad debts.(i) Continue to strengthen risk awareness, and strengthen risk management of accounts receivable. And strengthen internal control ofcustomer credit policy management. Customer credit policy adjustments are required to pass the necessary approval procedures.(ii) Keep detailed business records and accounting work. And use the records as important reference for future credit rating. Keep realtime updating on customers' information and learn their latest credit situation, in order to make suitable credit policies.
At the end of the year, Supor's accounts receivable from related party SEB ASIA LTD accounted for 58.68% of closing balance(70.35% as of December 31, 2021), and the Company's account receivables are expected to have less credit risk. As the Company'scredit risks fall into several business partners and customers, as of June 30, 2022, 18.85% (11.28% as of December 31, 2021) of the
total accounts receivable was due from the five largest customers of the Company after deducting receivables from related party SEBASIA LTD. The Company had no significant central credit risk.
3. Other receivables
Other receivables of Supor are mainly export rebate receivable and deposit as security receivable, etc. Supor performed collectivemanagement and ongoing monitoring on such receivables and related business to avoid significant risks in bad debts.(a) Analysis of receivables not past due but impaired and receivables past due but not impaired are as follows:
Unit: RMB
| Item | Closing balance | ||||
| Neither past due nor impaired | Past due nor impaired | Total | |||
| Within 1 year | 1-2 years | Over 2 years | |||
| Receivables financing | 232,348,975.14 | 232,348,975.14 | |||
Other receivables
| Other receivables | 1,523,227.27 | 1,523,227.27 | |||
| Subtotal | 233,872,202.41 | 233,872,202.41 |
(Continued)
| Item | Opening balance | ||||
| Neither past due nor impaired | Past due nor impaired | Total | |||
| Within 1 year | 1-2 years | Over 2 years | |||
| Receivables financing | 3,312,225.62 | 3,312,225.62 | |||
| Other receivables | 1,237,370.65 | 1,237,370.65 | |||
| Subtotal | 4,549,596.27 | 4,549,596.27 | |||
(b) Please refer to Note VII "4. Accounts receivable" for receivables with impairment provision made on individual basis.
3. Liquidity risk
Liquidity risk is the risk that Supor may encounter deficiency of funds in meeting obligations associated with cash or otherfinancial assets settlement. Liquidity risk is possibly attributable to failure in selling financial assets at fair value on a timely basis, orfailure in collecting liabilities from counterparts of contracts, or early redemption of debts, or failure in achieving estimated cash flows.
In order to control such risk, Supor optimizes asset liabilities, and finally maintains a balance between financing sustainabilityand flexibility.Financial instruments classified based on remaining time period till maturity
Unit: RMB
| Item | Closing balance | ||||
| Book value | Within 1 year | 1-3 years | Over 3 years | Total | |
| Financial assets | |||||
| Monetary capital | 3,479,946,026.90 | 3,479,946,026.90 | 3,479,946,026.90 | ||
| Transactional financial assets | 220,550,529.85 | 220,550,529.85 | 220,550,529.85 | ||
| Notes receivable | 35,454,679.55 | 35,454,679.55 | 35,454,679.55 | ||
| Accounts receivable | 2,151,142,929.18 | 2,151,142,929.18 | 2,151,142,929.18 | ||
| Receivables financing | 232,348,975.14 | 232,348,975.14 | 232,348,975.14 | ||
| Other receivables | 16,635,885.82 | 16,635,885.82 | 16,635,885.82 | ||
| Other debt investments | 586,813,657.54 | 632,835,000.00 | 632,835,000.00 | ||
| Other current assets [note] | 592,407,534.24 | 592,407,534.24 | 592,407,534.24 | ||
| Subtotal | 7,315,300,218.22 | 6,728,486,560.68 | 632,835,000.00 | 7,361,321,560.68 | |
| Financial liabilities | |||||
| Notes payable | 1,578,200,000.00 | 1,578,200,000.00 | 1,578,200,000.00 |
Accounts payable
| Accounts payable | 2,554,956,770.95 | 2,554,956,770.95 | 2,554,956,770.95 | ||
| Other payables | 99,060,772.22 | 99,060,772.22 | 99,060,772.22 | ||
| Other current liabilities | 32,678,311.69 | 32,678,311.69 | 32,678,311.69 | ||
| Lease obligation | 187,083,421.05 | 36,159,248.17 | 100,603,828.59 | 79,087,554.02 | 215,850,630.78 |
| Subtotal | 4,451,979,275.91 | 4,301,055,103.03 | 100,603,828.59 | 79,087,554.02 | 4,480,746,485.64 |
Note: Other current assets are term deposits for the purpose of earning interest.
(Continued)
| Item | Opening balance | ||||
| Book value | Within 1 year | 1-3 years | Over 3 years | Total | |
| Financial assets | |||||
Monetary capital
| Monetary capital | 2,654,052,417.47 | 2,654,052,417.47 | 2,654,052,417.47 | ||
| Transactional financial assets | 180,312,742.31 | 180,312,742.31 | 180,312,742.31 | ||
| Notes receivable | 54,879,357.24 | 54,879,357.24 | 54,879,357.24 | ||
| Accounts receivable | 2,716,945,985.33 | 2,716,945,985.33 | 2,716,945,985.33 | ||
| Receivables financing | 3,312,225.62 | 3,312,225.62 | 3,312,225.62 | ||
| Other receivables | 12,159,756.67 | 12,159,756.67 | 12,159,756.67 | ||
| Other debt investments | 298,191,205.49 | 322,745,000.00 | 322,745,000.00 | ||
| Other current assets [note] | 1,863,761,369.84 | 1,863,761,369.84 | 1,863,761,369.84 | ||
| Subtotal | 7,783,615,059.97 | 7,485,423,854.48 | 322,745,000.00 | 7,808,168,854.48 | |
| Financial liabilities | ? | ? | ? | ||
| Notes payable | 500,250,000.00 | 500,250,000.00 | 500,250,000.00 | ||
| Accounts payable | 3,769,700,826.50 | 3,769,700,826.50 | 3,769,700,826.50 |
| Other payables | 110,605,272.21 | 110,605,272.21 | 110,605,272.21 | ||
| Other current liabilities | 53,979,357.24 | 53,979,357.24 | 53,979,357.24 | ||
| Lease obligation | 186,611,554.59 | 37,993,728.54 | 98,489,145.81 | 75,992,456.73 | 212,475,331.08 |
| Subtotal | 4,621,147,010.54 | 4,472,529,184.49 | 98,489,145.81 | 75,992,456.73 | 4,647,010,787.03 |
Note: Other current assets are term deposits for the purpose of earning interest.(II) Transformation of financial assetsFinancial assets that have been transferred but not collectively terminated for recognitionFor details, please refer to the relevant description of Note VII "3. Notes receivable financing and 24. Other current liabilities" of thisfinancial statement.
XI. Disclosure of fair value
1. Details of fair value of assets and liabilities at fair value at the balance sheet date
Unit: RMB
| Item | Fair value as of the balance sheet date | |||
| Level 1 of fair value measurement | Level 2 of fair value measurement | Level 3 of fair value measurement | Total | |
| I. Recurring fair value measurement | -- | -- | -- | -- |
| (I) Transactional financial asset | 220,550,529.85 | 220,550,529.85 | ||
| (II) Other debt investments | 586,813,657.54 | 586,813,657.54 | ||
| (III)Receivables financing | ||||
| （1）Notes receivable | 232,348,975.14 | 232,348,975.14 | ||
| II. Non-continued measurement of fair value | -- | -- | -- | -- |
2. Basis of determining the market price of continuous and non-continuous level 1 fair valuemeasurement projectNone
3. Continuous and non-continuous level 2 fair value measurement item, using valuationtechnique and quantitative and qualitative information of important parametersFor other debt investments and receivables financing, the fair value is determined by discounting future cash flows.
4. Continuous and non-continuous level 3 fair value measurement item, using valuationtechnique and quantitative and qualitative information of important parameters
For the financial products in financial assets measured at the fair value with their changes included into the current profits and losses,its fair value is determined by the method of discounting future cash flows which is calculated at the agreed expected rate of return.
5. Details of the fair value of the financial assets and financial liabilities not measured at fairvalueOn June 30th, there is no significant difference between the book value and fair value of Supor's financial assets and liabilities.XII. Related parties and connected transactions
1. Parent company
| The parent company name | Place of registration | Business nature | Registered capital | Holding proportion over the parent company (%) | Holding voting rights over the parent company (%) |
| SEB INTERNATIONALE S.A.S | France | Investment company | EUR 830 Million | 82.44% | 82.44% |
Remarks on the parent companyBusiness scope of the parent company: equity participation in all kinds of French and overseas enterprises (regardless operationpurpose), namely, purchase and subscription of stock, bonds, the company shares and interest, various securities and marketablesecurities, and transfer of such securities or notes, all financial operations related to equity participation, purchase, manufacturing andsales of home appliance for the purpose of distribution and rendering of relevant services, all activities directly or indirectly contributingto the realization of these operations, particularly in the areas of movable properties, real estate, finance, commerce and industryoperation.The Company's final controlling party is SEB S.A. .
2. Company's subsidiaries
Please refer Note IX, 1. "Equity in subsidiaries" for details on the Company's subsidiaries.
3. Joint ventures and associated enterprises of the Company
Please refer to Note IX, 2. "Equity in joint venture or associated enterprise" for details on the Company's significant joint ventures andassociated enterprises.Details of other joint ventures or associated enterprises carrying out related party transactions with the Company in current period orin prior period but with balance in current period are as follows:
| Name of joint venture or associated enterprise | Relationships with the Company |
| Wuhan Anzai Cookware Co., Ltd. | Associated enterprise |
4. Other related parties of the Company
| Related party | Relationships with the Company |
| SEB S.A. | Ultimate controlling shareholder |
| SEB ASIA LTD. | Same controlling shareholder |
| TEFAL S.A.S. | Same controlling shareholder with the controlling shareholder |
| ALL-CLAD METALCRAFTERS LLC | Same controlling shareholder |
| S.A.S. SEB | Same controlling shareholder with the controlling shareholder |
| SEB INTERNATIONAL SERVICE S.A.S. | Same controlling shareholder with the controlling shareholder |
| LAGOSTINA S.P.A. | Same controlling shareholder |
| GROUPE SEB MOULINEX | Same controlling shareholder with the controlling shareholder |
| GROUPE SEB EXPORT | Same controlling shareholder with the controlling shareholder |
| SEB DEVELOPPMENT SAS | Same controlling shareholder with the controlling shareholder |
| IMUSA USA LLC | Same controlling shareholder |
| CALOR SAS | Same controlling shareholder with the controlling shareholder |
| Supor Group Co., Ltd. | The company controlled by related natural person |
| Zhejiang Supor Sanitary Ware Co., Ltd. | The company controlled by related natural person |
| ETHERA | Same controlling shareholder with the controlling shareholder |
| WMF CONSUMER ELECTRIC GMBH | Same controlling shareholder |
| WMF Consumer Goods (Shanghai) Co, Ltd. | Same controlling shareholder |
| WMF GROUPE GMBH | Same controlling shareholder |
| GROUPE SEB VIETNAM JOINT STOCK COMPANY | Same controlling shareholder |
| GROUPE SEB SINGAPORE | Same controlling shareholder |
| GROUPE SEB THAILAND | Same controlling shareholder |
| Emsa Taicang Co., Ltd. | Same controlling shareholder |
| WMF (HE SHAN) MANUFACTURING COMPANY LIMITED | Same controlling shareholder |
| ROWENTA WERKE GMBH | Same controlling shareholder with the controlling shareholder |
| EMSA GMBH | Same controlling shareholder |
| GROUPE SEB USA | Same controlling shareholder |
| GROUPE SEB CANADA | Same controlling shareholder |
| GROUPE SEB ANDEAN S.A. | Same controlling shareholder |
| GROUPE SEB IBERICA | Same controlling shareholder |
| GROUPE SEB SCHWEIZ GMBH | Same controlling shareholder |
| SEB DO BRASIL PRODS.DOM.LTDA | Same controlling shareholder |
| GROUPE SEB KOREA,LTD | Same controlling shareholder |
| GROUPE SEB MALAYSIA | Same controlling shareholder |
| GS INNOVATION CENTER CO., LTD. | Same controlling shareholder |
| Zhejiang Nanyang Pharmaceutical Sales Co., Ltd. | The company controlled by related natural person |
| Zhejiang Sukean Pharmaceutical Co., Ltd | The company controlled by related natural person |
5. Situations of connected transaction
(1) Connected transactions in the purchase and sale of commodities, provision and acceptance of laborservicesPurchase of commodities and receiving of services
Unit: RMB
| Related party | Contents of connected transaction | Amount incurred during this period | Transaction quota granted | Exceeding transaction amount or not | Amount incurred during last period |
| Wuhan Anzai Cookware Co., Ltd. | Finished products | 64,451,093.92 | No | 72,149,324.35 | |
| Wuhan Anzai Cookware Co., Ltd. | Accessories | 42,746,852.61 | No | 50,308,402.62 | |
| GROUPE SEB EXPORT | Finished products | 4,569,624.34 | No | 4,681,888.48 | |
| TEFAL S.A.S. | Accessories | 5,564,791.38 | No | 11,906,028.49 | |
| LAGOSTINA S.P.A. | Finished products | 2,194,942.00 | No | 1,427,551.91 | |
| SEB INTERNATIONAL SERVICE S.A.S. | Finished products | No | 89,892.57 | ||
| SEB INTERNATIONAL SERVICE S.A.S. | Accessories | 234,206.73 | No | 0.00 | |
| GROUPE SEB MOULINEX | Accessories | 1,839,097.62 | No | 4,079,912.51 | |
| CALOR SAS | Accessories | No | 758,681.93 | ||
| WMF (HE SHAN) MANUFACTURING COMPANY LIMITED | Finished products | 214,089.78 | No | 156,628.32 | |
| GROUPE SEB THAILAND | Finished products | No | 237,155.10 | ||
| EMSA GMBH | Finished products | No | 312,245.49 | ||
| ETHERA | Accessories | 319,583.04 | No | 2,092,156.82 | |
| WMF GROUPE GMBH | Finished products | 12,387,300.16 | No | 21,197,316.07 | |
| WMF Consumer Goods (Shanghai) Co, Ltd. | Finished products | No | 357,692.92 | ||
| Supor Group Co., Ltd. | Finished products | 7,471.00 | No | 198,449.00 |
Sale of commodities and rendering of services
Unit: RMB
| Related party | Contents of connected transaction | Amount incurred during this period | Amount incurred during last period |
| SEB ASIA LTD. | Finished products | 2,599,590,781.21 | 3,211,594,813.23 |
| SEB ASIA LTD. | Accessories | 2,648,083.19 | 2,303,452.69 |
| S.A.S. SEB | Finished products | 10,143,181.26 | 11,211,990.95 |
| S.A.S. SEB | Accessories | 495,400.35 | 471,368.44 |
| TEFAL S.A.S. | Finished products | 5,771,600.06 | 5,555,389.15 |
| TEFAL S.A.S. | Accessories | 7,810,501.26 | 8,550,683.56 |
| GROUPE SEB MOULINEX | Finished products | 11,729,902.13 | 20,125,024.32 |
| Supor Group Co., Ltd. | Finished products | 2,459,900.56 | 1,762,877.47 |
| Zhejiang Nanyang Pharmaceutical Sales Co., Ltd. | Finished products | 216,700.00 | |
| SEB INTERNATIONAL SERVICE S.A.S. | Finished products | 50,257.57 | |
| SEB INTERNATIONAL SERVICE S.A.S. | Accessories | 10,678,771.92 | 9,538,342.63 |
| LAGOSTINA S.P.A. | Finished products | 49,269.52 | 85,928.20 |
| LAGOSTINA S.P.A. | Accessories | 781,661.90 | 525,338.80 |
| ALL-CLAD METALCRAFTERS LLC | Finished products | 355,563.53 | |
| IMUSA USA LLC | Finished products | 9,872,683.87 | 7,116,454.14 |
| IMUSA USA LLC | Accessories | 17,306.67 | |
| WMF Consumer Goods (Shanghai) Co, Ltd. | Finished products | 219,109.25 | 210,726.93 |
| GROUPE SEB CANADA | Finished products | 8,281,052.82 | 6,332,810.49 |
| GROUPE SEB VIETNAM JOINT STOCK COMPANY | Finished products | 12,712,078.20 | 15,780,546.35 |
| GROUPE SEB VIETNAM JOINT STOCK COMPANY | Accessories | 11,067.77 | 11,451.68 |
| CALOR SAS | Finished products | 22,887,048.00 | |
| GROUPE SEB ANDEAN S.A. | Accessories | 2,785,092.32 | 536,496.98 |
| Wuhan Anzai Cookware Co., Ltd. | Finished products | 136,200.50 | |
| Wuhan Anzai Cookware Co., Ltd. | Accessories | 11,947.34 |
(2) Related party leases
Supor as the lessor:
NoneSupor as the leasee:
Unit: RMB
| Lessor | leasee | Types of leased assets | Right-of-use asset confirmed on January 1, 2022 | Right-of-use asset purchased in 2022 | Interest expense on lease obligation accured in 2022 |
| Supor Group Co., Ltd. | Wuhan Cookware | Real estate | 12,199,661.48 | 232,535.11 | |
| Zhejiang Supor Electrical | Real estate | 41,784,917.90 | 749,408.06 | ||
| Shaoxing Supor | Real estate | 3,987,385.03 | 69,393.51 |
Other remarks:
This item is the right-of-use asset confirmed under the implementation of the New Lease Standards.
Unit: RMB
| Lessor | leasee | Types of leased assets | Lease income for current period | Lease income for last period |
| Supor Group Co., Ltd. | P&R | Real estate | 68,114.29 | 59,600.00 |
Other remarks:
This is the short-term lease cost under the implementation of the New Lease Standards.
(3) Key management personnel's emoluments
Unit: RMB10,000
| Item | Amount incurred during this period | Amount incurred during last period |
| Key management personnel's emoluments | 1,091.43 | 690.24 |
(4) Other connected transaction
Unit: RMB
① Water and electricity charges
| Selling parties | Purchasing parties | Amount incurred during this period | Amount incurred during last period |
| Supor Group Co., Ltd. | Zhejiang Supor Electrical | 106,169.13 | 215,047.66 |
| Wuhan Cookware | 31,382.22 | ||
| Shaoxing Supor | 29,985.43 | ||
| The Company | Supor Group Co., Ltd. | 530,222.21 |
② Property fee, maintenance cost and berth fee
| Service renderer | Service receiver | Amount incurred during this period | Amount incurred during last period |
| Supor Group Co., Ltd. | The Company | 290,380.76 | |
| Zhejiang Supor Electrical | 97,142.86 | ||
| Wuhan Cookware | 164,285.71 |
③ Consulting fee
| Service renderer | Service receiver | Amount incurred during this period | Amount incurred during last period |
| SEB ASIA LTD. | The Company | 448,824.00 | 448,824.00 |
| Wuhan Cookware | 227,046.00 | -1,072,070.75 | |
| Shaoxing Supor | 318,516.00 | 318,516.00 | |
| Zhejiang Supor Electrical | 205,614.00 | -972,694.61 |
④ Cost of international shopping center
| Service renderer | Service receiver | Amount incurred during this period | Amount incurred during last period |
| SEB DEVELOPPMENT SAS | Shaoxing Supor | 1,680,000.00 | 1,680,000.00 |
| Zhejiang Supor Electrical | 1,320,000.00 | 1,320,000.00 | |
| Wuhan Cookware | 834,070.74 | 4,495,122.41 |
⑤ Testing services, etc.
| Service renderer | Service receiver | Amount incurred during this period | Amount incurred during last period |
| The Company | GS INNOVATION CENTER CO., LTD. | 62,842.64 | 31,967.45 |
| Shaoxing Supor | 149,192.38 | ||
| Zhejiang Supor Electrical | 236,616.00 | 194,180.87 | |
| AFS | GROUPE SEB VIETNAM JOINT STOCK COMPANY | 1,586,131.90 | 1,757,050.03 |
| GS INNOVATION CENTER CO., LTD. | Shaoxing Supor | 1,256,325.00 | 1,183,987.50 |
⑥ Warehousing services
| Service renderer | Service receiver | Amount incurred during this period | Amount incurred during last period |
| The Company | SEB ASIA LTD. | 2,519,895.82 | |
| Wuhan Cookware | 986,402.20 | ||
| Zhejiang Supor Electrical | 351,667.60 | ||
| Shaoxing Supor | 1,764,063.02 |
⑦ Pursuant to the Technical License Contract entered into by and between Wuhan Supor Cookware Co., Ltd and S.A.S. SEB onDecember 29, 2013, S.A.S. SEB licensed Wuhan Supor Cookware Co., Ltd to use its five invention patents including "Householdappliance equipped with safety valve of elastomer for cooking food under pressure" on a compensation basis. According to relatedterms in the contract signed by both parties, use charges are accrued at 3% of revenue from sales of products licensed. In the currentperiod, Wuhan Supor Cookware Co., Ltd shall pay S.A.S. SEB technology use charges of RMB 188,839.30 (2021: RMB 959,469.90),and as of June 30, 2022, a balance of RMB 27,003.47 has not been paid (December 31, 2021: RMB 59,092.58).
⑧ Pursuant to the Trademark License entered into by and between Wuhan Cookware and LAGOSTINA SPA. on December 15,2014, LAGOSTINA SPA. licensed Wuhan Cookware to use its trademark "LAGE" on a compensation basis. According to the relatedterms and conditions of the contract signed by both parties, the usage fee is calculated according to 4% of the sales of licensed products.This year, Wuhan Cookware should pay LAGOSTINA SPA. trademark usage fee RMB 14,164.15 (2021: RMB 242,952.24), and onJune 30, 2022, there was still left RMB 1,366,729.81 to be paid (December 31, 2021: RMB 1,352,565.66).
⑨ Pursuant to the Trademark License Agreement entered into by and between Omegna and LAGOSTINA SPA. on December 5,2016, LAGOSTINA SPA. licensed Omegna to use its trademark "LAGE" on a compensation basis. According to the related terms andconditions of the contract that signed by both parties, the usage fee should be accounted according to 4% of the achieved sales of thelicensed products. This year, Omegna should pay LAGOSTINA SPA trademark usage fee RMB 60,208.52 (RMB 296,857.06 in 2021),and there was still left RMB 3,983,949.59 to be paid on June 30, 2022 (RMB 3,923,741.07 on December 31, 2021).
⑩ Shaoxing Supor Company purchased and used particles product of air purifier and relevant technology in accordance withAgreement on Purchase and Using for Particles of Air Purifier signed by Shaoxing Supor Company on April 25, 2016 with ETHERA.According to the related terms and conditions of the contract that signed by both parties, the usage fee should be accounted accordingto 4% of the achieved sales of the licensed products. This year, Shaoxing Supor should pay ETHERA trademark usage fee RMB10,204.23 (RMB 26,477.63 in 2021), and there was still left RMB 4,345.21 to be paid on June 30, 2022 (RMB 4,508.27 on December31, 2021).
6. Receivables and payables by related parties
(1) Items receivable
Unit: RMB
| Item | Related party | Closing balance | Opening balance |
| Book balance | Provision for bad debts | Book balance | Provision for bad debts | ||
| Accounts receivable | SEB ASIA LTD. | 1,316,557,188.89 | 52,662,287.56 | 1,997,332,966.57 | 79,893,318.66 |
| S.A.S. SEB | 9,841,435.47 | 393,657.42 | 6,147,139.48 | 245,885.58 | |
| TEFAL S.A.S. | 6,475,188.73 | 259,007.55 | 8,875,016.25 | 355,000.65 | |
| SEB INTERNATIONAL SERVICE S.A.S. | 6,361,517.07 | 254,460.68 | 4,644,231.13 | 185,769.25 | |
| GROUPE SEB MOULINEX | 4,038,642.41 | 161,545.70 | 11,459,698.09 | 458,387.92 | |
| IMUSA USA LLC | 9,032,734.67 | 361,309.39 | 1,014,864.16 | 40,594.57 | |
| Supor Group Co., Ltd. | 365,082.69 | 18,254.13 | 4,899.50 | 244.98 | |
| WMF Consumer Goods (Shanghai) Co, Ltd. | 423,930.90 | 16,957.24 | 186,011.75 | 7,440.47 | |
| GROUPE SEB CANADA | 3,239,592.70 | 129,583.71 | 4,763,025.58 | 190,521.02 | |
| GROUPE SEB VIETNAM JOINT STOCK COMPANY | 13,515,419.09 | 540,616.76 | 14,256,667.31 | 570,266.69 | |
| GROUPE SEB ANDEAN S.A. | 2,585,908.06 | 103,436.32 | 832.03 | 33.28 | |
| Wuhan Anzai Cookware Co., Ltd. | 13,500.50 | 675.03 | |||
| LAGOSTINA S.P.A. | 473,709.12 | 18,948.36 | 563,856.28 | 22,554.25 | |
| GS INNOVATION CENTER CO., LTD. | 325,793.68 | 13,031.75 | 290,340.44 | 11,613.62 | |
| Total | 1,373,249,643.98 | 54,933,771.60 | 2,049,539,548.57 | 81,981,630.94 | |
| Advance payment | Supor Group Co., Ltd. | 71,520.00 | |||
| Total | 71,520.00 | ||||
| Other receivables | Supor Group Co., Ltd. | 145,000.00 | 38,750.00 | 145,000.00 | 31,250.00 |
| Total | 145,000.00 | 38,750.00 | 145,000.00 | 31,250.00 |
(2) Items payable
Unit: RMB
| Item | Related party | Ending book balance | Opening book balance |
| Accounts payable | Wuhan Anzai Cookware Co., Ltd. | 12,090,496.70 | 25,709,129.31 |
| WMF GROUPE GMBH | 3,913,213.46 | 9,027,718.65 | |
| GROUPE SEB EXPORT | 3,324,314.50 | ||
| TEFAL S.A.S. | 3,158,249.22 | 6,211,218.34 | |
| S.A.S. SEB | 27,003.47 | 61,735.76 | |
| LAGOSTINA S.P.A. | 7,107,021.40 | 6,012,269.93 | |
| GROUPE SEB MOULINEX | 1,206,546.65 | 3,082,576.38 | |
| GROUPE SEB THAILAND | 417,891.72 | 111,031.93 |
| GROUPE SEB SINGAPORE | 1,147,747.82 | ||
| SEB INTERNATIONAL SERVICE S.A.S. | 243,137.68 | 10,454.54 | |
| ETHERA | 4,345.21 | 156,257.68 | |
| GS INNOVATION CENTER CO., LTD. | 85,394.66 | 282,079.64 | |
| Supor Group Co., Ltd. | 462,017.63 | 3,621,694.75 | |
| SEB ASIA LTD. | 367,774.83 | ||
| WMF (HE SHAN) MANUFACTURING COMPANY LIMITED | 241,921.45 | ||
| Total | 32,649,328.58 | 55,433,914.73 | |
| Contract liabilities: | Supor Group Co., Ltd. | 104,203.43 | 405,442.77 |
| Zhejiang Nanyang Pharmaceutical Sales Co., Ltd. | 407.08 | 305.31 | |
| Total | 104,610.51 | 405,748.08 | |
| Other payables | SEB S.A. | 7,228,621.42 | 6,839,932.07 |
| Total | 7,228,621.42 | 6,839,932.07 | |
| Lease obligation: | Supor Group Co., Ltd. | 41,779,159.50 | 43,864,152.61 |
| Total | 41,779,159.50 | 43,864,152.61 |
XIII. Share-based Payment
1. Overall information
?Applicable □Not-applicable
Unit: RMB
| Total amount of equity instruments granted in the current period of the company | 1,209,500.00 |
| Total amount of equity instruments exercised in the current period of the company | 0.00 |
| Total amount of equity instruments expired in the current period of the company | 24,000.00 |
| The range of exercise price of stock options issued by the company at the end of the period and the remaining term of the contract | 2021 Equity Incentive Plan: RMB 1/share, 3.58 years |
Other remarks
According to the Proposal on the 2021 Restricted Stock Incentive Plan (Draft) of Zhejiang Supor Co., Ltd. and its abstract(hereinafter referred to as the 2021 Incentive Plan) reviewed and approved at the third interim shareholders' meeting in 2021 held onDecember 30, 2021, the company plans to grant 1,209,500 restricted stocks to the incentive target and completed the repurchase of1,209,500 shares of the share capital company from December 15, 2021 to December 21, 2021. The Company granted 1,209,500 shareson January 6, 2022 at a price of RMB 1/share.The 2021 annual incentive plan is valid for 4 years from the first grant date. The incentive plan has a lock-up period of 24 monthsand an unlock period of 36 months, which can be unlocked in two phases. If the unlock conditions are met, the incentive object canapply for unlocking twice, and then apply for unlocking 50% and 50% of the total restricted stocks granted after 24 months and 36months from the grant registration date respectively. As of June 30, 2022, the remaining term of the above incentive plan is 3.58 years.
Since some incentive objects resigned from the Company, totally 24,000 shares of restricted stock that had been granted toresigned incentive objects were repurchased at the price of RMB1 per share in accordance with the Proposal on Repurchasing andCanceling a Part of Restricted Stock deliberated and adopted in the 12
thSession of the Seventh Board of Directors.
2. Equity-settled share-based payment
?Applicable □Not-applicable
Unit: RMB
| Determination method for fair value of equity instruments on Grant Date | According to the market price on the Grant Date. |
| Basis for determining the number of exercisable equity instruments | Based on the corresponding equity instruments of the on-the-job incentive targets, the Company shall determine the performance of the Company and the forecast of future performance of the Company |
| Reasons for significant difference between the estimates in current period and prior period | None |
| The accumulated amount of equity-settled share-based payment included in the capital reserve | 21,404,889.90 |
| Total cost incurred due to equity-settled share-based payment transactions | 21,404,889.90 |
Other remarksNote 1. According to the 2021 annual incentive plan reviewed and approved by the third interim shareholders' meeting in 2021 held onDecember 30, 2021, the Company used its own funds to buy back 1,209,500 shares of the Company for the incentive plan, with thegrant price of RMB 1.00 per share, which decreased the treasury share of RMB 1,209,500 yuan, and included in the capital reserve-capital premium of RMB 74,950,397.25.
2. The capital reserve affected by the equity incentive plan in 2021 is RMB 0 yuan at the beginning of the year, RMB 21,404,889.90this year, and RMB 21,404,889.90 at the end of the year.
XIV. Commitments and Contingencies
1. Contingencies
(1) Significant contingencies at the date of balance sheet
Contingent liabilities arising from pending litigation and arbitration and their financial impactIn 2016, the private patent holder filed a lawsuit against its subsidiary Shaoxing Supor for infringing its patent. In 2020, the relevantpatent right held by the plaintiff was declared invalid by the Patent Reexamination Board of the State Intellectual Property Office, andthe litigation risk of Supor decreased. At present, the above-mentioned case is still inconclusive. Considering the principle ofconservatism, Supor still retained the estimated liabilities of RMB 5.15 million on June 30, 2022 (December 31, 2021: RMB 5.15million). In 2020, an export customer filed a legal lawsuit against Shaoxing Life Electric Appliance Company, a subsidiary company,on the grounds of a user dispute. At present, the above-mentioned case is still inconclusive. Considering the principle of conservatism,Supor still retained the estimated liabilities of RMB 4 million on June 30, 2022 (December 31, 2021: RMB 4 million). In 2021, anotherexport customer filed a claim for product quality problems against its subsidiary Shaoxing Supor on the grounds of user disputes. Atpresent, the above case is still inconclusive. Considering the principle of conservatism, Supor still retained the estimated liabilities ofRMB 2 million on June 30, 2022 (December 31, 2021: RMB 2 million).
Contingent liabilities formed by financial guarantee and its financial impactSupor signed a tripartite acceptance agreement with distributors and banks, and Supor provided financing guarantee for banks toissue bank acceptance bills to distributors. In the case of endorsement and transfer of the acceptance bill obtained by Supor, if thedistributor fails to repay the difference between the security and the amount of the acceptance bill after the maturity of the acceptancebill, the risk exposure that Supor will bear is the partial difference loss that the bank has not recovered from the distributor. As of June30, 2022, Supor will bear the risk exposure of RMB 204,466,653.39, and the Company will make provision for the estimated liabilitiesof financial guarantee contract for this risk exposure, totaling RMB 1,022,333.27.
(2) If the Company has no important contingencies that need to be disclosed, it shall also be explainedThe Company has no important contingencies to be disclosed.XV. Events after the Balance Sheet Date
1. Liquidation of subsidiaries
On January 24, 2022, Shanghai SEB was put into liquidation with a special liquidation team established. Shanghai SEB has stoppedits production in July 2021 and moved its production line and supporting facilities as a whole to the Group's production base in Shaoxingand Hangzhou in Zhejiang. The liquidation team filed at Minhang Market Supervision and Administration Bureau on February 16,2022, and the liquidation began after an announcement published on the newspapers to the creditors on February 24, 2022. ShanghaiSEB is in the process of liquidation by the date of the approval of this financial statement.XVI. Other Important Matters
1. Branch information
(1) Determination basis and accounting policy of reportable segment
Supor establishes operating segment according to internal organizational structure, management requirement and internal reportsystem; determines reportable segment and disclose segment information based on operating segment.
Operating Segment refers to the Supor's organization meeting following conditions: (1) The organization can yield income andcost in daily activity; (2) The Supor's management can appraise operating result of the organization regularly, so as to allocate resourceson a targeted basis and evaluate its performance; (3) Supor can obtain financial information, operating result, cash flow and otherrelevant accounting information of the organization. Two or more operating segments, which have similar economic characteristicsand meet a certain condition, can be merged into an operating segment.
When preparing segment reports, inter-segment transaction income is measured based on the actual transaction price. Theaccounting policies adopted in the preparation of segment reports are consistent with those adopted in the preparation of Supor'sfinancial statements.
Supor's main products are cooking utensils, small domestic appliance, etc. Supor determines the reportable segment based onproduct and regional segment, and the assets and liabilities shared by each product segment cannot be clearly distinguished.
(2) Financial information of reportable segments
Unit: RMB
① Product segment
| Item | Cooking utensils | Electrical product | Others | Inter-segment offsetting | Total |
| Revenue from main business | 3,089,629,748.93 | 7,182,486,418.81 | 87,534,215.61 | 103,210,951.78 | 10,256,439,431.57 |
| Cost of main business | 2,266,959,061.22 | 5,383,268,896.34 | 75,896,893.21 | 103,411,463.58 | 7,622,713,387.19 |
② Geographic segment
Supor's information on foreign transaction revenue and non-current assets (excluding financial assets and deferred income taxassets, the same below) listed by different regions is shown in the table below. Foreign transaction revenue is divided according to thelocation of customers who receive services or purchase products. Non-current assets are classified according to the physical locationof assets (for fixed assets and construction in progress), the location where related businesses are assigned (for intangible assets) or thelocation of joint venture and associated enterprise.
| Item | Domestic | Foreign | Inter-segment offsetting | Total |
| Revenue from main business | 7,419,891,762.28 | 2,846,696,169.69 | 10,148,500.40 | 10,256,439,431.57 |
| Cost of main business | 5,168,929,688.89 | 2,464,080,719.08 | 10,297,020.78 | 7,622,713,387.19 |
③ Major Customers
Among Supor's customers, there is one (2021: 1) whose revenue from a single customer accounts for 10% or more of Supor'stotal revenue, which is a related party SEB ASIA LTD, accounting for about 25.21% of Supor's total revenue (2021: 30.80%).XVII. Notes to items of parent company financial statements
1. Accounts receivable
(1) Details on categories
Unit: RMB
| Categories | Closing balance | Opening balance | ||||||||
| Book balance | Provision for bad debts | Book value | Book balance | Provision for bad debts | Book value | |||||
| Amount | Proportion | Amount | Provision proportion | Amount | Proportion | Amount | Provision proportion | |||
| Accounts receivable for provision for bad debts by portfolio | 608,569,577.91 | 100.00% | 18,738,969.27 | 3.08% | 589,830,608.64 | 770,159,019.26 | 100.00% | 27,825,217.23 | 3.61% | 742,333,802.03 |
| Including: | ||||||||||
| Portfolio 1: age portfolio | 468,277,521.50 | 76.94% | 18,617,525.51 | 3.98% | 449,659,995.99 | 695,510,017.57 | 90.31% | 27,765,218.24 | 3.99% | 667,744,799.33 |
| Portfolio 2: low-risk portfolio | 121,443,761.99 | 19.96% | 121,443.76 | 0.10% | 121,322,318.23 | 59,998,991.48 | 7.79% | 59,998.99 | 0.10% | 59,938,992.49 |
| Portfolio 3: merged related parties portfolio | 18,848,294.42 | 3.10% | 0.00% | 18,848,294.42 | 14,650,010.21 | 1.90% | 14,650,010.21 | |||
| Total | 608,569,577.91 | 100.00% | 18,738,969.27 | 3.08% | 589,830,608.64 | 770,159,019.26 | 100.00% | 27,825,217.23 | 3.61% | 742,333,802.03 |
Provision for bad debts by portfolio: Portfolio 1: age portfolio
Unit: RMB
| Name | Closing balance | ||
| Book balance | Provision for bad debts | Provision proportion | |
| Within 1 year | 468,277,521.50 | 18,617,525.51 | 3.98% |
| Total | 468,277,521.50 | 18,617,525.51 |
If provision for bad debts for accounts receivable is made based on the general model of expected credit losses, please disclose therelevant information about the provision for bad debts with reference to the disclosure of other receivables:
□Applicable ?Not-applicable
Disclosure by ages
Unit: RMB
| Ages | Closing balance |
| Within 1 year (including 1 year) | 608,569,577.91 |
| Total | 608,569,577.91 |
(2) Provision for bad debts accrued, collected or reversed in the current periodProvision for bad debts in current period:
Unit: RMB
| Categories | Opening balance | Amount of changes in the current period | Closing balance | |||
| Provision | Collected or reversed | Canceled after verification | Others | |||
| Provision for bad debts for accounts receivable | 27,825,217.23 | -9,086,247.96 | 18,738,969.27 | |||
| Total | 27,825,217.23 | -9,086,247.96 | 18,738,969.27 | |||
(3) Accounts receivable with top 5 closing balances collected by debtors
Unit: RMB
| Name of organization | Closing balance of accounts receivable | Proportion in the total closing balance of accounts receivable | Closing balance of provision for bad debts |
| SEB ASIA LTD. | 462,358,248.67 | 75.97% | 18,494,329.95 |
| Customer C | 97,282,171.59 | 15.99% | 97,282.17 |
| Wuhan Cookware | 9,040,741.34 | 1.49% | |
| Customer I | 8,828,869.25 | 1.45% | 8,828.87 |
| Customer J | 5,296,930.71 | 0.87% | 5,296.93 |
| Total | 582,806,961.56 | 95.77% |
2. Other receivables
Unit: RMB
| Item | Closing balance | Opening balance |
| Other receivables | 879,855,389.11 | 1,845,295,351.20 |
| Total | 879,855,389.11 | 1,845,295,351.20 |
(1) Other receivables
1) Other receivables categorized by nature
Unit: RMB
| Nature of receivables | Ending book balance | Opening book balance |
| Fund pool | 876,567,505.24 | 1,844,438,348.07 |
| Temporary payment receivable | 1,111,787.30 | 1,439,315.12 |
| Personal deposit | 3,252,497.53 | 356,338.04 |
| Total | 880,931,790.07 | 1,846,234,001.23 |
2) Provision for bad debts
Unit: RMB
| Provision for bad debts | Phase I | Phase II | Phase III | Total |
| Predicted credit loss in future 12 months | Predicted credit loss in the whole period of existence (without credit impairment) | Predicted credit loss in the whole period of existence (with credit impairment) | ||
| Amount on January 1, 2022 | 938,650.03 | 938,650.03 | ||
| Balance on January 1, 2022 in the current period | ||||
| Provision for bad debts during the reporting period | 137,750.93 | 137,750.93 | ||
| Balance on June 30, 2022 | 1,076,400.96 | 1,076,400.96 |
Changes in book balance of loss provision due to significant changes in the current period
□Applicable ?Not-applicable
Disclosure by ages
Unit: RMB
| Ages | Closing balance |
| Within 1 year (including 1 year) | 879,930,540.89 |
| 1-2 years | 100,000.00 |
| Over 3 years | 901,249.18 |
| 4-5 years | 5,000.00 |
| Over 5 years | 896,249.18 |
| Total | 880,931,790.07 |
3) Provision for bad debts accrued, collected or reversed in the current periodProvision for bad debts in current period:
Unit: RMB
| Categories | Opening balance | Amount of changes in the current period | Closing balance | |||
| Provision | Collected or reversed | Canceled after verification | Others | |||
| Provision for bad debts of other receivables | 938,650.03 | 137,750.93 | 1,076,400.96 | |||
| Total | 938,650.03 | 137,750.93 | 1,076,400.96 | |||
4) Other receivables with top 5 closing balances collected by debtors
Unit: RMB
| Name of organization | Nature of receivables | Closing balance | Ages | Proportion in the total closing balance of other receivables | Closing balance of provision for bad debts |
| Wuhan Cookware | Fund pool | 340,218,591.34 | Within 1 year | 38.62% | |
| Zhejiang Supor Electrical | Fund pool | 301,528,747.16 | Within 1 year | 34.23% | |
| Shanghai WMF | Fund pool | 89,000,000.00 | Within 1 year | 10.10% | |
| Omegna | Fund pool | 67,721,070.08 | Within 1 year | 7.69% | |
| Zhejiang WMF | Fund pool | 56,760,672.49 | Within 1 year | 6.44% | |
| Total | 855,229,081.07 | 97.08% |
3. Long-term equity investment
Unit: RMB
| Item | Closing balance | Opening balance | ||||
| Book balance | Impairment provision | Book value | Book balance | Impairment provision | Book value | |
| Investment in subsidiaries | 2,959,452,926.82 | 2,959,452,926.82 | 2,948,542,538.52 | 2,948,542,538.52 | ||
| Investments in associates and joint ventures | 64,961,837.65 | 64,961,837.65 | 65,419,057.50 | 65,419,057.50 | ||
| Total | 3,024,414,764.47 | 3,024,414,764.47 | 3,013,961,596.02 | 3,013,961,596.02 | ||
(1) Investments in subsidiaries
Unit: RMB
| Invested unit | Opening balance (Book value) | Increase/decrease | Closing balance (Book value) | Closing balance of impairment provision | |||
| Investment increased | Investment decreased | Accrued impairment provision | Others | ||||
| Wuhan PC | 240,428,244.41 | 240,428,244.41 | |||||
| P&R | 20,804,297.92 | 20,804,297.92 | |||||
| Yuhuan Sales Company | 2,990,149.81 | 2,990,149.81 | |||||
| Zhejiang Supor Electrical | 770,267,854.79 | 2,698,838.94 | 772,966,693.73 | ||||
| Shaoxing Supor | 639,411,908.49 | 3,256,304.04 | 642,668,212.53 | ||||
| Supor Vietnam | 105,143,165.64 | 105,143,165.64 | |||||
| Wuhan Recycling | 1,000,000.00 | 1,000,000.00 | |||||
| Omegna | 10,000,000.00 | 10,000,000.00 | |||||
| Shanghai Marketing | 5,000,000.00 | 5,000,000.00 | |||||
| Wuhan Cookware | 598,253,566.39 | 1,822,822.38 | 600,076,388.77 | ||||
| SEADA | 11,890,622.45 | 11,890,622.45 | |||||
| Shanghai WMF | 50,000,000.00 | 176,973.06 | 50,176,973.06 | ||||
| Shanghai SEB/SSEAC | 212,152,728.62 | 212,152,728.62 | |||||
| Zhejiang WMF | 100,000,000.00 | 805,227.36 | 100,805,227.36 | ||||
| Supor LKA | 100,000,000.00 | 247,762.26 | 100,247,762.26 | ||||
| Shaoxing Supor Housewares | 50,000,000.00 | 1,902,460.26 | 51,902,460.26 | ||||
| Supor Water Heater | 31,200,000.00 | 31,200,000.00 | |||||
| Total | 2,948,542,538.52 | 10,910,388.30 | 2,959,452,926.82 |
(2) Investments in associates and joint ventures
Unit: RMB
| Investing unit | Opening balance (book value) | Increase/decrease | Closing balance (book value) | Closing balance of impairment provision | |||||||
| Investment increased | Investment decreased | Investment profit or loss recognized by equity method | Adjustment in other comprehensive income | Changes in other equity | Cash dividend/profit declared for distribution | Accrued impairment provision | Others | ||||
| I. Joint Venture | |||||||||||
| II. Associated Enterprise | |||||||||||
| Wuhan Anzai Cookware Co., Ltd. | 65,419,057.50 | -457,219.85 | 64,961,837.65 | ||||||||
| Subtotal | 65,419,057.50 | -457,219.85 | 64,961,837.65 | ||||||||
| Total | 65,419,057.50 | -457,219.85 | 64,961,837.65 | ||||||||
4. Operating income and operating cost
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during last period | ||
| Revenue | Cost | Revenue | Cost | |
| Main business | 1,100,175,925.03 | 1,008,919,142.74 | 1,275,291,505.47 | 1,086,178,831.77 |
| Other business | 18,296,531.96 | 16,109,933.67 | 78,596,848.63 | 74,045,444.45 |
| Total | 1,118,472,456.99 | 1,025,029,076.41 | 1,353,888,354.10 | 1,160,224,276.22 |
Information related to revenue:
Unit: RMB
| Contract Classification | Total |
| Commodit type | |
| Including: | |
| Cooking utensils and utensils | 1,098,857,913.76 |
| Other household electric appliances | 19,614,543.23 |
| Classified by business area | |
| Including: | |
| Domestic | 55,518,735.18 |
| Foreign | 1,062,953,721.81 |
| Classification by time of commodity transfer | |
| Including: | |
| Revenue recognized at a certain time point | 1,118,472,456.99 |
Information related to performance obligations:
NoneInformation related to the transaction price allocated to the remaining performance obligations:
At the end of the reporting period, the amount of revenue corresponding to the performance obligations that have signed contracts buthave not been fulfilled is RMB 2,398,065.17, of which RMB 2,398,065.17 is expected to be recognized in 2022.
5. Investment income
Unit: RMB
| Item | Amount incurred during this period | Amount incurred during last period |
| Long-term equity investment income under the equity method | -457,219.85 | 1,025,583.40 |
| Investment income from disposal of transactional financial asset | 1,534,044.99 | |
| Interest for term deposit | 28,822,530.29 | 40,606,438.36 |
| Investment income of debt investment during the holding period | 3,552,197.12 | |
| Total | 33,451,552.55 | 41,632,021.76 |
XVIII. Supplementary information
1. Breakdown of non-recurring profit or loss in the current period
?Applicable □Not-applicable
Unit: RMB
| Item | Amount | Notes |
| Losses and gains from disposal of non-current assets | -312,542.28 | |
| Government subsidies included in the current profits and losses (except those that are closely related to the Company's normal business operations, comply with national policies and regulations and are continuously available according to certain standard quota or quantity) | 21,616,692.79 | |
| Enterprise restructuring costs, such as resettling employees expenses, integration expenses, etc. | -453,079.14 | |
| Except effective hedging business related to the Company's normal business operations, profits and losses from fair value changes caused by the held transactional financial assets and transactional financial liabilities, and investment income acquired from disposal of transactional financial assets, transactional financial liabilities and available-for-sale financial assets | 10,065,488.38 | |
| Other non-operating incomes or expenditures except for the foregoing items | 883,117.00 | |
| Minus: Influenced amount of income tax | 8,065,234.95 | |
| Influenced amount on minority shareholders' equities | -429.33 | |
| Total | 23,734,871.13 | -- |
Details of other profit and loss items complying with the definition of non-recurring profits or losses:
□Applicable ?Not-applicable
The Company does not have other specific circumstances of other profit and loss items complying with the definition of non-recurringprofits or losses in the Company.Description of defining non-recurring profits or losses items listed in the Explanatory Announcement No.1 on Disclosure of theInformation of Companies Offering Their Securities to the Public -- Non-recurring Profit or Loss as recurring profits and losses
□Applicable ?Not-applicable
2. Return on net assets and earnings per share
| Profit of the reporting period | Return on weighted average net assets | Earnings per share | |
| Basic earnings per share (RMB/share) | Diluted earnings per share (RMB/share) | ||
| Net profit attributable to shareholders of ordinary shares | 12.31% | 1.155 | 1.155 |
| Net profit attributable to shareholders of ordinary shares after deducting non-recurring profit or loss | 11.99% | 1.126 | 1.125 |
3. Accounting Data Discrepancies under domestic and foreign Accounting Standards
(1) Net profit and net assets discrepancies in financial statements disclosed separately under InternationalAccounting Standards and Chinese Accounting Standards
□Applicable ?Not-applicable
(2) Net profit and net assets discrepancies in financial statements disclosed separately under InternationalAccounting Standards and Chinese Accounting Standards
□Applicable ?Not-applicable
(3) The reason for the accounting data difference under domestic and foreign accounting standard shall beexplained. If the data audited by the foreign audit organization carries out the difference adjustment, thename of the foreign organization shall be indicated.None
Zhejiang Supor Co., Ltd.Chairman: Thierry de LA TOUR D’ARTAISE
August 31, 2022